Feeling like you’ve been waiting an eternity for your tax return this year? Trust me, you’re not the only one. There are a few issues with state taxes that are causing delays for some folks. Tax specialists indicate that while you can go ahead and file your federal taxes in South Carolina, it’s advisable to hold off on your state taxes for now. The reason? South Carolina hasn’t yet adopted several updates from the federal government.
“Most taxpayers are likely to see a bigger refund than in previous years,” said Brandon Smith. “Depending on individual situations, seniors aged 65 and older can claim an additional $6,000 deduction. There’s also a $25,000 deduction for tip income, and, of course, an overtime deduction.” However, despite these federal adjustments, South Carolina is still behind the curve.
“As of now, South Carolina has not accepted these federal changes. This means that some deductions I mentioned will need to be added back when filing your state return,” Smith explained.
So what’s the best course of action? Well, he suggests waiting to file your state taxes.
“We’re advising people to file their federal taxes now if they’re expecting a sizable refund. Honestly, there’s nothing more to wait for. After that, we’ll just have to see how South Carolina responds,” he mentioned.
If waiting isn’t in your plans, you do have the option to submit an amendment, though it’s a bit tricky.
“To amend your return, you’ll need to fill out a 1040-X or a South Carolina 1040-X form. This is, unfortunately, more complicated than a standard return,” Smith indicated. “I’m not quite sure if TurboTax or other software programs manage amended returns as smoothly as they do regular ones, but generally, preparing them isn’t overwhelmingly difficult. We’re experienced with amended returns; they just take a little extra effort.”
Smith expressed optimism that the state will eventually accept these updates. However, he admits he can’t predict when that might happen or whether it will come with an extended deadline.
We reached out to the South Carolina Department of Revenue, and a spokesperson replied:
“At the start of the tax season, the SCDOR took time to collaborate with software vendors to ensure their systems were in line with the state’s tax laws and regulations.”
“Returns filed electronically might take up to eight weeks to process from February 2 or the filing date, whichever comes later. Paper returns will naturally require more time. As for the amended return review process, it will take no less than 12 weeks to finish,” they added.
“The best advice for taxpayers wanting a speedy refund is to file electronically using an approved software vendor. You can find a comprehensive list at dor.sc.gov/iit-filing.”
