The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) provides individuals with a stimulus payment of $1,200 per adult, plus $500 for each qualifying child age 16 and under (subject to phase-outs for higher income individuals). The stimulus payment provided by the CARES Act is structured as a refundable federal income tax credit.
South Carolina does not allow individuals to deduct federal income taxes in arriving at South Carolina taxable income. Consequently, federal tax credits generally have no impact on an individual’s South Carolina income tax liability. The South Carolina Department of Revenue issued SC Information Letter #20-13 on June 11, 2020 to confirm stimulus payments individuals receive under the CARES Act are not includable in arriving at South Carolina taxable income. In light of the continued economic certainty related to the coronavirus crisis, this assurance from DOR that stimulus payments are not taxable is welcome news for South Carolina taxpayers.
PartnerJeff focuses his practice on helping clients utilize tax exemptions and tax incentives. A substantial portion of Jeff's practice relates to tax-exempt bonds, including issues related to governmental bonds, private activity ...
