COLUMBIA, S.C. (WCBD) – The South Carolina Department of Revenue (SCDOR) on Tuesday has released a list of tax tips for active-duty military personnel and veterans.
Current and former military members may qualify for various exemptions, deductions, and benefits under SC tax code.
Veterans in South Carolina could be eligible for the following Income Tax Exclusions:
- Any federal tax-exempt pension or compensation provided by the U.S. Department of Veterans Affairs
- Combat pay and certain benefits not included in federal taxable income
- Retirement income paid by the U.S. government for service in the Reserves or National Guard
- Income received for service in the National Guard or the Reserves for customary annual training, weekend drills, and other inactive duty training is generally exempt
- Service pay for non-resident military personnel on active duty in South Carolina who are legal residents of other states
Some military retirees ages 65 and up may be eligible to deduct “up to $30,000 of military retirement income included in South Carolina taxable income each year.”
Additionally, “eligible military retirees of any age with both earned income and military retirement income may deduct up to $17,500 of earned income” annually.
Veterans with full or partial service-related disabilities can qualify for the following property tax exemptions:
- A tax exemption on a home and land on the same parcel, up to five acres, that is classified as owner occupied and either titled solely to the veteran or jointly with a spouse
- A tax exemption on up to two private passenger vehicles owned or leased by a veteran or jointly with a spouse
Medal of Honor recipients can qualify for the following property tax exemptions:
- A tax exemption on a home and land up to one acre that is either titled solely to the recipient or jointly with a spouse
- A tax exemption on up to two vehicles owned or leased by the recipient
Former WWI, WWII, Korean War, or Vietnam War prisoners of war can qualify for the following property tax exemptions:
- The same tax exemptions granted to Medal of Honor recipients for home and land up to one acre that is classified as owner occupied and either titled solely to the former POW or jointly with a spouse
- A tax exemption on up to two private passenger vehicles owned or leased by the former POW or jointly with a spouse
The SCDOR also noted that “surviving spouses for all three types of veterans listed above qualify for tax exemptions on the home if they inherit sole ownership from the deceased spouse. The surviving spouses of POWs and disabled veterans can qualify for exemptions on up to one vehicle solely owned by them.”
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