Tax Law Insights

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 ...