Bill > S0241

This bill addresses the marriage tax penalty in South Carolina by allowing married couples who file a joint federal tax return to calculate their South Carolina state income tax as if they were single filers, if doing so would result in a lower total tax liability. Specifically, the bill adds a new section (12-6-525) to the state tax code that permits married taxpayers to elect to calculate their state income tax individually and then reduce their joint tax return amount by the excess tax owed. This means if a married couple would pay less in taxes by calculating their taxes as if they were single, they can now do so. The bill is important because it helps alleviate the financial burden some married couples face when their combined income pushes them into a higher tax bracket. The legislation will take effect upon the Governor's approval and will first apply to tax years beginning after 2024. The South Carolina Department of Revenue is authorized to create rules and regulations to implement this new tax calculation method, ensuring a clear and consistent approach to the new tax calculation option.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=0241&session=126&summary=B