Daniel Prince
SC Department of Revenue now accepting state returns, as well
Today is the opening day of the individual income tax season. The South Carolina Department of Revenue will begin accepting 2022 tax returns today through April 18. Even though you can file today, the SCDOR will not begin processing the returns until February 6 to allow employers to meet the January 31 deadline for W-2 submissions. The IRS is also accepting tax returns starting today. In addition, they will begin processing the federal returns immediately. This Friday is Earned Income Tax Credit Awareness Day, where the IRS raises awareness of valuable tax credits available to many people, including the option to use prior-year income to qualify. The national and state tax deadline will be Tuesday, April 18 this year, due to the Emancipation Day holiday in Washington, D.C. For those who request an extension, the due date to file would be October 16.
Many South Carolinians are eligible to file taxes online for free with easy-to-use tax preparation software. You can visit dor.sc.gov/iit-filing to view all the filing options. Make sure you have all W-2s, 1099s, and other necessary documents before you file. SCDOR notes that year-end pay stubs may not match what your employer reports to them, which can slow down processing. They also state that when getting a refund, choosing direct deposit is the fastest and safest option, because it is deposited directly into your account without having to worry about lost or stolen checks or delayed or returned mail. According to the SCDOR, last year more than 93% of individual income tax returns were filed electronically, and approximately 87% of refunds were issued by direct deposit.
Tax return and refund processing is expected to take 6-8 weeks from February 6 or the date you file, whichever is later. This allows SCDOR to use all available tools to check for fraud and protect your refund. Once you file, you can check your refund status at dor.sc.gov/refund. For state income tax purposes, military retirement pay is excluded from taxes starting this year. State tax rebate recipients will pay no state taxes on their payment, which is considered a refund. There is an increase in the dependent exemption this year. There is also an increase in the motor fuel user fee credit, as well as the earned income tax credit. For more information on state income taxes, go to dor.sc.gov/iit. For federal income tax information, visit www.irs.gov.