Tax Rebate From South Carolina: How IRS Extension Impacts SC Filers

Tax Rebate From South Carolina: How IRS Extension Impacts SC Filers

October 12, 2022

South Carolina residents now have some more time to claim the one-time tax rebate. After the IRS postponed its deadline for extension filers in South Carolina as a result of Hurricane Ian, the South Carolina Department of Revenue (SCDOR) also extended the deadline for extension filers.

This means that residents now have until Feb. 15, 2023, to claim the tax rebate from South Carolina.

Why Is The Tax Filing Deadline Postponed?

In June, state lawmakers approved a $1 billion tax rebate plan for South Carolinians. To qualify for the tax rebate, residents had until the extension deadline (October 17) to file their state individual income tax return. Now, the state has extended the deadline to February 15.

Last week, the IRS announced that it had postponed the deadline for the extension filers in South Carolina and North Carolina because of Hurricane Ian. Previously, the filing deadline for the extension filers was October 17, but now it has been postponed to February 15 of next year.

After the IRS’ decision, the SCDOR also extended the deadline for extension filers to file Individual Income Tax returns to Feb. 15, 2023. In addition to postponing the deadline for extension filers, a few more state returns and payments deadlines have also been extended.

For instance, business income tax returns that were originally due on October 17 have been extended to Feb. 15, 2023; some quarterly withholding returns and payments originally due October 31 and January 31, 2023, have also been postponed; and fourth-quarter individual income tax estimated payments originally due Jan. 17, 2023, have been postponed to February of next year as well.

How To Claim The Tax Rebate From South Carolina

Now South Carolinians have until Feb. 15, 2023, to file their 2021 Individual Income Tax return. It must be noted that taxpayers still need to file their return by October 17 to get the tax rebate before the end of the year. Those who file their return after October 17 will not receive a rebate until March 2023.

“You must file a South Carolina Individual Income Tax return (SC1040?) for tax year 2021 by October 17, 2022 to be eligible to receive the rebate by December 31, 2022??,” the SCDOR said.

Apart from filing the tax return, taxpayers also need to have a tax liability for 2021 and be a resident of South Carolina to qualify for the rebate. Eligible residents can claim the tax rebate from South Carolina of up to $700.

Taxpayers will get the rebate via the same method in which they received their 2021 Income Tax refund. Additionally, those with a balance due, or changed their bank account, or received their 2021 refund using a tax preparer’s account will get a paper check.

Taxpayers who received their 2021 refund through direct deposit, but their banking information has changed since then, have until November 1 to inform about the same to the SCDOR.

Such taxpayers need to download, complete, and sign form SC5000, and email it to [email protected]. These taxpayers will also get a paper check, and thus, it is important that they add their correct address on the SC5000 form.

This article originally appeared on ValueWalk

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.

Source: Read Full Article