Bill > H3436

This bill amends South Carolina tax law to allow married couples who file a joint federal tax return to calculate their state income tax in a way that potentially reduces their overall tax liability. Specifically, the bill permits married taxpayers to separately calculate their state income tax as if they were single filers, and if this calculation results in a lower cumulative tax burden compared to filing jointly, they can reduce the amount owed on their joint return. This provision is designed to provide tax relief for married couples who might currently face a "marriage penalty" where filing jointly results in higher taxes. The bill defines "married" according to existing state law and gives the South Carolina Department of Revenue the authority to create rules for implementing this new calculation method. The tax provision will take effect after gubernatorial approval and will apply to tax years beginning after 2024, giving taxpayers a potential new strategy to minimize their state income tax obligations while still maintaining their joint federal filing status.