SOUTH CAROLINA DEPENDENT EXEMPTION – Both qualifying children and qualifying relatives are allowed a dependent exemption in the amount of $4,110 for each eligible dependent on the South Carolina return.
MOTOR FUEL INCOME TAX CREDIT – Full year or part year resident taxpayers may qualify for a new refundable credit for the lesser amount of the increase in South Carolina Fuel User Fee they paid during 2018 or the preventative maintenance costs the paid in South Carolina during the tax year. The credit is restricted to two private passenger motor vehicles or motorcycles. Attach a completed I-385 to your return to claim the credit.
EARNED INCOME TAX CREDIT – Full year resident may be eligible to claim the new South Carolina Earned Income Tax Credit. The nonrefundable credit is equal to 20.83% of the Federal Earned Income Tax Credit allowed the taxpayer in the 2018 tax year.
INCREASE IN TWO WAGE EARNER CREDIT – The maximum credit available for the Two Wage Earner Credit (claimed by a married couple filing jointly when both taxpayers have earned income taxed to South Carolina) has increased. For 2018, the credit is computed at 0.7% of the lesser of $33,333 or the South Carolina qualified earned income of the taxpayer with the lower qualified income for the taxable year.
INCREASE IN TUITION TAX CREDIT – The refundable Tuition Tax Credit increased to 50% of the tuition paid to an institution of higher learning (both two‐year and four‐year institutions), not to exceed $1,500.
STATE TAX ADD-BACK ADJUSTMENT – If you deducted State and Local Income Tax when itemizing on your 2018 Federal Income Tax return, you are required to add all or part of this amount to federal taxable income to arrive at your South Carolina taxable income. Your federal Schedule A for 2018 limits the deduction for state and local taxes to $10,000 ($5,000) for MARRIED FILING SEPARATELY). A worksheet and instructions for calculating the add-back to be reported on your South Carolina 1040 is included in the SC1040 instructions.