South Carolinians who received unemployment compensation in 2020 may exclude up to $10,200 from their state tax filings. You must have less than $150,000 in federal adjusted gross income for 2020 to be eligible for this tax relief.

For more information, see the:

• SCDOR news release
  
• Information Letter 21-14
  

• Learn more about temporary relief related to nexus and withholding in the FAQs below. 
  
  
• Economic Impact Payments related to COVID-19 response are issued by the IRS, not the SCDOR. Learn more about Economic Impact Payments and federal tax relief at irs.gov/coronavirus.

What can I do if I can't afford to pay my taxes because of COVID-19?
We offer payment plan options for tax bills. Visit dor.sc.gov/payplan for more information.

If I have employees temporarily working remotely in South Carolina or outside of South Carolina due to COVID-19, does that impact my employer withholding?
Review Information Letters 20-11, 20-24, 20-29, 21-8, 21-22, 21-31, and Revenue Ruling 22-3, for more information on how temporary remote working due to COVID-19 impacts employer withholding.

Have I established nexus in South Carolina if I have employees temporarily working in South Carolina due to COVID-19?
The SCDOR will not use changes solely in an employee’s temporary work location due to the remote work requirements arising from, or during, the COVID-19 relief period (March 13, 2020 – June 30, 2022) as a basis for establishing nexus (including for Public Law 86-272 purposes) or altering apportionment of income. Learn more in Information Letters 20-11, 20-24, 20-29, 21-8, 21-22, 21-31, and Revenue Ruling 22-3.

Will I need to pay taxes on the Economic Impact Payment I received from the IRS?

The IRS is issuing federal Economic Impact Payments, sometimes referred to as stimulus payments, as authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). For South Carolina Income Tax purposes, the Economic Impact Payment is not taxable. Learn more in Information Letter 20-13. 

The SCDOR is not responsible for and cannot provide assistance related to these payments. Learn more about Economic Impact Payments and federal tax relief at irs.gov/coronavirus.

Email or call the tax area you have questions for using the contact information provided at dor.sc.gov/contact. You can also send us a message if you have a MyDORWAY account and are logged in by clicking Send the SCDOR a Message from the More tab.

Where can I get more information about the virus?
For the latest information about the virus in South Carolina, visit the South Carolina Department of Health and Environmental Control's dedicated webpage, scdhec.gov/COVID19.