The South Carolina Department of Revenue (SCDOR) will begin distributing almost $1 billion in state tax rebates later this year. But how do you know if you are getting a rebate?

Here are some tips to help you figure that out:

• First, you must have filed a South Carolina Individual Income Tax return (SC1040) for tax year 2021 by October 17, 2022, the filing extension deadline.
• Second, you must have tax liability for tax year 2021. That means what's left after subtracting your credits from the Individual Income Tax that you owe.
  
• To calculate your liability, use your 2021 SC1040. First, check if you have an amount on line 10.
• ​​If you don't, you do not have a tax liability and are not eligible for a rebate.
• If you do, continue to calculate your liability by adding your refundable credits, lines 21 and 22. Now subtract those credits, if any, from line 15. If that amount is greater than $1, you are eligible for a rebate.

• ​​line 15 - (line 21 + line 22)

• You can receive a rebate if you are a South Carolina resident, part-year resident, or nonresident as long as you file an SC Individual Income Tax return by October 17 and have tax liability for tax year 2021.
  

Not sure if your specific situation affects your eligibility? Here are some common scenarios:

• Married couples filing a joint return will receive one rebate. The rebate cap is not higher for joint returns.
• You may not receive a rebate if your unpaid balance due on the tax return you filed this year is greater than your tax liability. If you owed taxes after filing your return and did not pay, the rebate will be used to offset your balance.
• If you did not file a return because you did not receive any income in 2021, you are not eligible for a rebate. You must file a return and have tax liability to be eligible.
• Whether or not you received a tax refund this year will not impact your eligibility.
• If you owe money to another state agency that is being collected by the SCDOR, that will not impact your eligibility. Any rebate you receive will not be applied to that debt.
• Taxpayers who moved to South Carolina in 2022 probably will not be eligible, since the rebate is reserved for those who have filed a 2021 SC Individual Income Tax return.
• Those who didn't live in the state in 2021 but filed a 2021 SC return could be eligible, since the two primary requirements are that you file a 2021 return and have some tax liability.
• SC residents stationed outside of the state as part of their military duty could be eligible as long as they filed a 2021 SC return and have a tax liability. See below for instructions on changing your address.

Other important reminders:

• If you are eligible for a rebate and have not changed your address or banking information since filing your return, you need not do anything to receive your rebate.
• Be sure your address on file with the SCDOR is current. If you need to change your address, notify us by November 1, 2022 of your new address. Download, complete, and sign the SC5000 and email it to SCRebate@dor.sc.gov.  

• If you received a direct deposit refund from your 2021 return and your banking information has changed, notify us by November 1. Download the SC5000 and email the completed and signed form to SCRebate@dor.sc.gov. You will receive a paper check rebate, so be sure to include your updated address on the SC5000 if it has changed.
• The rebates will be issued before December 31, 2022.

Stay informed
For more information, visit the SCDOR's website at dor.sc.gov/rebate-2022.

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