COLUMBIA, S.C. — Many South Carolina Taxpayers could get hundreds of dollars in a one-time rebate this year.
Only South Carolinians who paid state income tax will receive a rebate, which is about 1.5 million filers. About 44% of filers who do not pay state income taxes will not receive a rebate.
"About 56% of the tax returns are expected to get a rebate based on their tax liability. That ranges from as little as $1. It could go up even higher," said Executive Director of the State Revenue and Fiscal Affairs Office Frank Rainwater.
For those getting a check, every bit of money helps.
"I wish I could get it back sooner, but that would be helpful especially with gas prices and everything’s just going up," said Tonja Edwards who will soon be getting a rebate.
"I think it would be helpful, period for everybody. With the situation of the economy, food, everything else, just going up," said Lethea Hoffman.
Each return filed in 2021 will receive a rebate equal to the amount of tax liability on the return. According to Rainwater, your tax liability is based on how much you owe after the course of a year, even if you got a refund.
Rebates will be capped at around $800.
Rainwater explained it's hard to estimate what the average rebate will be, since no two returns are the same.
"South Carolina has a wide range of taxpayers," Rainwater said. "There is no 'average taxpayer.'"
Rainwater said residents can find how much they paid in state income taxes by referring to line 15 on their state income tax return.
"If your return had one person on it single or married, filing jointly, it's still per return so people need to be aware of that," said Rainwater.
The rebates will cost the state about $1 billion. The State Department of Revenue must issue the rebates by the end of the year.
State lawmakers also passed an income tax cut bill Wednesday, which reduced the number of income tax rates from five to two and immediately cuts the top rate from 7% to 6.5%. The top rate will be reduced to 6% over a span of five years.
