South Carolina Confirms CARES Act Stimulus Payments Are Not Taxable

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.

Posted in: CARES Act/PPP
Jump to Page
Arrow icon Top

Contact Us

We use cookies to improve your website experience, provide additional security, and remember you when you return to the website. This website does not respond to "Do Not Track" signals. By clicking "Accept," you agree to our use of cookies. To learn more about how we use cookies, please see our Privacy Policy.

Necessary Cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. These cookies may only be disabled by changing your browser settings, but this may affect how the website functions.

Analytical Cookies

Analytical cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.