MYRTLE BEACH, S.C (WBTW) — Two South Carolina men have created an app to help add up and calculate gas and maintenance receipts to claim the state’s motor fuel income tax credit upon tax time.
After signing into the app, the user can click where it says enter gas, then add in their vehicle, the date the gasoline was purchased, how many gallons were purchased and how much it cost.
Co-creator Brett Snell tells me he and Adam Reeves just wanted to make calculating the tax credit a little easier.
Doing the mathematical formula to calculate any cash back in South Carolina’s gas tax credit sounds, well, pretty complicated.
“After you tell people, well it’s the lesser of your maintenance, your gas tax, and then you’ve got to multiply it by your adjustment credit factor,” Snell said.
Snell, an accountant, hopes the app will help South Carolinians record their gas and maintenance receipts to get the gas tax credit.
“We really tried to make it as simple as possible,” said Snell.
Introduced three weeks ago, the app does the formula for the user, to see how much they’d get at tax time with the credit.
“It allows them to kind of keep up with it throughout the year,” said Myrtle Beach tax attorney Jackson Turner-Vaught. “Everything’s in one place.”
“If you had a shoebox full of your gas receipts, you know, you could enter those all in, you’re able to, you know, go back and enter them in like January, February,” said Snell.
Not many people have claimed the credit since it was created, but, if more people did, Snell says the benefits would trickle down.
“Let’s say about 52,000 of those people actually do it this year, and you know, the state’s saying the average credit for someone’s going to be $78. I think if you do that math, that’s about $4 million that would be coming to your community on the Grand Strand,” Snell said.
Landscapers or Uber drivers could benefit the most because they use a lot of gasoline and probably have more car maintenance done than usual.
But for someone who doesn’t drive that often, Turner-Vaught says it may not be as worth it.
“I noticed that the app itself is five dollars, so you’ve got to take that into account as well, you know, with how much are you going to get back after you do that,” said Turner-Vaught.
For now, Snell hopes the credit could extend past its current expiration of 2022.
“I would love to see a ton of people start claiming this credit, and somehow get in touch with our state senators, and you know, get this thing passed to extend,” he said.
Snell says only around 80,000 people claimed the motor fuel income tax credit last year.
He since not many people are claiming the credit, the recently released credit adjustment factor is up from last year, now at 100%, which could mean you could get more cash back.
Essentially, Snell says if someone’s credit was 100 in 2018 or 2019, then they needed to multiply the credit amount by the rate, and would only have gotten back $63 in 2018 or $77 in 2019, because the credit adjustment factor was .634 in 2018 and .768 in 2019.
This year, if someone’s credit comes out to be 100, they would get $100 back because the credit adjustment factor is 100%.
“They have that in place because if everybody that was able to claim this credit did, there wouldn’t be enough money allotted for everybody to take this credit,” said Snell. “People always complain about the government spending their money. Well, you can get your money back and spend it however you want to.”