The Department of Revenue of South Carolina has successfully issued the first round of rebates for eligible taxpayers. The first issue of the rebate included taxpayers who have filed their 2021 SC Individual Income tax return (SC1040) before October 17, 2022.
It was also announced by the Revenue Department that the rebate which was issued in the first round was of two types. They were issued as direct deposits or mailed paper checks. This is only the first round of rebates for the tax year.
The Department of Revenue also made an announcement regarding the second round of rebates. The second round of rebates will be issued by the department in March 2023.
The deadline for taxpayers to be eligible for the second round of rebates is February 15, 2023. People who file their returns after February 15, 2023, will not be considered for the second round.
If you are a taxpayer and have not received your rebate, chances are high that you have missed the deadline to be eligible for the first issue of rebates, which was October 17.
If you file your returns between October 18, 2022, and February 15, 2023, you need not worry about the rebate, as you will be seen as eligible for the second round of rebates.
There was also an announcement reading the change in the mailing address of the taxpayer.
If your address has undergone any change since your filing of the 2021 SC Individual Income Tax return, then there are two possible ways for you to make an update regarding that. First, you can log in to MyDORWAY, and then in the site that appears, press the more tab.
Once you click the More tab, select the Name and Addresses option from the new tab. There will be an option ‘Manage Name and Address’ in it. You can easily make the needed change and update your latest mailing address easily.
The same thing can also be done in another way. In order to do that you can download the SC88221 and then you can email the newly updated form to TaxSupport@dor.sc.gov.
It is also to be noted that there will be some delay in receiving the rebates if you have not updated your mailing address by November 1, 2022, using the SC5000.
Eligibility Requirements For Rebates
In order to be eligible for the rebate, you should meet some of the criteria put forward by the Revenue Department of South Carolina. The first and foremost criterion is regarding the date of filing the tax returns.
You are eligible for the rebate only if you have filed the individual income tax return by October 17, 2022, for the first issue of rebates and should file the tax return before February 15, 2022, for the second issue of rebates.
Another criterion is regarding the tax liability of the person. A person is said to have a tax liability if they owe the state individual income tax. The total amount of the income tax return minus any credits is the tax liability of a person.
In order to be considered eligible, you should have an income tax liability for the tax year 2021. The eligibility criteria also look if you are an SC resident, part-year resident, or non-resident.
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How To Calculate Your Rebate Amount?
The amount received by each taxpayer as a rebate is calculated based on their 2021 tax liability. The maximum amount a person receives as a rebate, which is known as a rebate cap is $800.
This means that if the tax liability of a person is less than $800, then the rebate amount will be the same as the amount. If the tax liability is more than $800, then the rebate amount will be $800.
In order to know the amount that you will receive as a rebate, first you will need to calculate your tax liability. Your tax liability can be calculated by following the steps given below;
To calculate the tax liability, first examine your 2021 income tax return (sc1040) and check the amount to see if you have a number on line 10.
If you do not have an amount on line 10, then it is better to stop there as the chances of getting a rebate are none. If the line 10 amount is $1 or more, then you can continue, as you will be able to receive one.
Up next, you should add your refundable credits found on lines 21 and 22. Now subtract those credits from line 15, if there are any.
To denote the procedure in a much simpler way;
line 15 – (line 21 + line 22)
How Will You Receive Your Rebate?
It was notified that the rebate issued in December 2022 and also in March 2023 will be issued with a direct deposit or paper check. The method will be chosen based on how you received your rebate in 2021.
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