S.C. Code § 12-6-1171

Current through 2024 Act No. 225.

Section 12-6-1171 - Military retirement income deduction; definitions; surviving spouse

(A) An individual taxpayer may deduct all military retirement income that is included in South Carolina taxable income.

(B) The term "retirement income", as used in this section, means the total of all otherwise taxable income not subject to a penalty for premature distribution received by the taxpayer or the taxpayer's surviving spouse in a taxable year from a qualified military retirement plan. For purposes of a surviving spouse, "retirement income" also includes a retirement benefit plan and dependent indemnity compensation related to the deceased spouse's military service.

(C) A surviving spouse receiving military retirement income that is attributable to the deceased spouse shall apply this deduction in the same manner that the deduction applied to the deceased spouse. If the surviving spouse also has another retirement income, an additional retirement exclusion is allowed.

(D) The department may require the taxpayer to provide information necessary for proper administration of this subsection.

S.C. Code § 12-6-1171

Amended by 2022 S.C. Acts, Act No. 228 (SB 1087),s 3, eff. 6/17/2022.

Amended by 2022 S.C. Acts, Act No. 156 (HB 3247),s 2, eff. 5/13/2022, app. to tax years beginning after 2021.

Added by 2016 S.C. Acts, Act No. 272 (HB 3147), s 1, eff. 6/7/2016.

2016 Act No. 272, Section 1.C, provides as follows:

"C. Notwithstanding the deduction allowed pursuant to Section 12-6-1171(A)(1), beginning in tax year 2016, the amount of the deduction shall be five thousand nine hundred dollars, and it shall increase by two thousand nine hundred dollars every year, until it is completely phased in in 2020. Notwithstanding the deduction allowed pursuant to Section 12-6-1171(A)(2), beginning in tax year 2016, the amount of the deduction shall be eighteen thousand dollars, and it shall increase by three thousand dollars every year, until it is completely phased in in 2020."

2022 Act No. 156, Sections 1 and 3, provide as follows:

"SECTION 1. This act shall be known and may be cited as the 'Workforce Enhancement and Military Recognition Act'."

"SECTION 3. This act takes effect upon approval by the Governor and first applies to tax years beginning after 2021."

2022 Act No. 228, Sections 1 and 3.B provide as follows:

"SECTION 1. This act may be cited as the 'Comprehensive Tax Cut Act of 2022'."

"[SECTION 3.]B. This SECTION takes effect upon approval by the Governor and first applies to tax years beginning after 2021."

Code Commissioner's Note

At the direction of the Code Commissioner, the amendments to (A) made by 2022 Act No. 156 and 2022 Act No. 228 were read together.