2024 LEGISLATIVE UPDATE – A list of significant changes in tax and regulatory laws and regulations enacted during the 2024 legislative session is available from the SCDOR Policy Division. Review Information Letter 24-16.

CONFORMITY – As of the 2024 Legislative Session, South Carolina conforms to the Internal Revenue Code as of December 31, 2023, except as otherwise provided. If Internal Revenue Code sections adopted by South Carolina which expired on December 31, 2023 are extended, but otherwise not amended, by congressional enactment during 2024​, these sections are also extended for South Carolina Income Tax purposes in the same manner that they are extended for federal Income Tax purposes.

REDUCTION IN INDIVIDUAL INCOME TAX RATES – The 2024 top marginal Individual Income Tax rate is 6.2% on taxable income. Use the 2024 Tax Tables (SC1040TT) to determine your tax.

INCREASE IN SOUTH CAROLINA DEPENDENT EXEMPTION (line w of the SC1040) – The South Carolina dependent exemption amount for 2024 is $4,790 and is allowed for each eligible dependent, including both qualifying children and qualifying relatives.

INCREASE IN CLASSROOM TEACHER EXPENSES CREDIT – ​For tax year 2024, the maximum credit amount is increased to $400. The credit is only available if the South Carolina classroom teacher was not eligible for an expense reimbursement for their teacher supplies and materials. ​​Use the I-360 to claim this refundable credit.

INCREASE IN VOLUNTEER DEDUCTION FOR CERTAIN PUBLIC SERVANTS (line j of the SC1040) – For tax year 2024, the volunteer deduction increases to $6,000 per tax year for eligible volunteer firefighters, rescue squad members, volunteer members of HAZMAT Response Team, reserve police officers, Department of Natural Resources deputy enforcement officers, members of the State Guard, and volunteer state constables.

INCREASE IN SUBSISTENCE ALLOWANCE FOR CERTAIN PUBLIC SERVANTS (line s of the SC1040) – For tax year 2024, the subsistence allowance increases to $16 for each regular work day in a tax year for federal, state, and local law enforcement officers, full-time firefighters, and full-time emergency medical service personnel.

ENERGY EFFICIENT MANUFACTURED HOME CREDIT – This credit has expired and is only available for taxpayers who qualified before July 2, 2024.

RAILROAD EXPENDITURES CREDIT – This is a nonrefundable tax credit available for tax years beginning after December 31, 2023, and will be repealed on December 31, 2028. The credit is available to eligible taxpayers with qualified railroad reconstruction and replacement expenditures. The guidelines for the Railroad Expenditures Credit are administered by the SC Department of Commerce. Use the TC-66 to claim the credit.

RECREATIONAL TRAIL EASEMENT CREDIT – This is a nonrefundable tax credit available for tax years beginning after December 31, 2023, and will be repealed on January 1, 2029.  The credit is available to an eligible taxpayer who encumbers property with a perpetual recreational trail easement and right of way. Use the TC-67 to claim the credit.

Taxpayers should be aware that there are some tax preparers seeking to unlawfully take advantage of unsuspecting clients. The SCDOR urges South Carolinians to be cautious and informed when selecting tax preparation assistance.

The Internal Revenue Service offers the following tips to help taxpayers make an informed decision on selecting a tax preparer:

• Check the preparer’s qualifications. All paid tax return preparers must have a Preparer Tax Identification Number (PTIN). You can use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to help find a preparer.
• Check the preparer’s history. Find out if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and the license status of credentialed preparers. Check with state boards of accountancy for certified public accountants; state bar associations for attorneys; and the IRS Office of Enrollment for enrolled agents.
• Ask about their service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers.
• Ask to e-file. The quickest way to get your refund is to electronically file and use direct deposit.
• Make sure the tax preparer is available. Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case you have questions.
• Provide records and receipts. Good preparers will ask to see a taxpayer’s records and receipts. They’ll ask questions to figure things like the total income, tax deductions, and credits.
• Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.
• Review the entire return before signing it. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
• Avoid preparers who refuse to sign a return they prepare or assist in preparing, on paper or electronically. The IRS calls these “ghost” preparers. They may require cash payments and not give receipts. They also may direct any refund into their bank account.
• Review details about your refund. Make sure your refund goes directly to you - not to the preparer's bank account. Review the routing and bank account number on the completed return.
• Report Abusive Tax Preparers to the IRS. Most tax return preparers are honest and provide great service to their clients. However, some preparers are dishonest. Report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer.

Read the full IRS article here.

A strong password is the first line of defense for protecting your personal data online. Passwords are necessary for a majority of our online activities, including filing taxes, social networking, online banking, and paying bills. Creating complex and unique passwords help to keep your information more secure.

A strong password should:

• Not be shared or written down in an open area. If you write down your password, lock it up in a secure area.
• Contain at least one capital letter (A-Z), one lowercase letter (a-z), one number (1, 2, 3…), and one special character (*!#>/%@…)
• Be changed on a regular basis — once a quarter, or as the seasons change

Passwords should NOT:

• Be written down
• Contain the user id, user’s name or initials, or family member names
• Contain other personal identifying information (nicknames, license plates, home address, Social Security Number, birthday)
• Be used on more than one site

Tip:

• When creating a password, try something that’s easy for you to remember but hard for a hacker to guess, like a passphrase.
  • A passphrase is a password composed of a string of words. You can easily turn a sentence into a complex and secure password.
  • For example: Br0wnCow@teMyH0m3work!

You can also use a password manager that creates unique passwords and stores your encrypted data. That way if one site is compromised, the password cannot be used on other websites to compromise additional accounts.

Find more tips on online security on our Security Center.

The South Carolina Department of Revenue (SCDOR) is committed to keeping taxpayer information secure and helping to educate and inform taxpayers about potential identity theft and fraud threats. Follow these steps to help protect yourself and your family.

1. Educate yourself and your family on potential scams, phishing attempts, and how to avoid them by utilizing IRS, SCDOR and SC Department of Consumer Affairs information.
2. Protect your personal information. Make complex online passwords. Do not use the same password for multiple sites. Keep sensitive paper documents locked in a filing cabinet.
3. Be careful with your money. Know who you’re dealing with in any situation involving monetary transactions. Don’t send money to unestablished charities. Don’t play foreign lotteries. Don’t agree to deposit a check and wire money back. Research a company before you invest. Always be wary of unsolicited offers.
4. Review your monthly statements carefully for any unauthorized charges. Thieves can steal your account information and run charges on your debit and credit cards. If you notice any strange charges, contact your bank or credit card company immediately.

Look for more tips and information regarding scams, phishing emails, and identity theft from the US Securities and Exchange Commission, the Federal Trade Commission, the IRS, and the SCDOR.