New federal regulations for South Carolina tax returns: What you need to know

New federal adjustments passed in the One Big Beautiful Bill Act affect deductions

Recent changes at the federal level may impact the deductions on your tax return. Caitlin Ashbaugh, who is currently in Greenville, is here to explain the details. So, Caitlin, it looks like some folks are already diving into their tax filings, even though the season just started. But state experts suggest it might actually be wise to wait—maybe a week or two—before submitting those returns. The spending bill from the Trump administration was passed, and now Congress and state legislatures are tackling a big list of changes aimed at 2025.

According to George Block, a state-certified public accountant, there are significant adjustments to federal tax returns that could alter the deductions you’re eligible for. He recommends taking a moment to grasp these changes, as this could save you from making frustrating adjustments later on. It’s not just about federal changes; you might also need to modify your state return, which can be quite a hassle. A lot of these alterations are set to boost deductions for standard filers and seniors. Additionally, those in tip- or overtime-based jobs will notice some favorable shifts in their business expenses, which could double to $2.5 million. Estimates say around 60–70% of taxpayers might experience these notable changes.

As of now, a month into the session, the South Carolina General Assembly has yet to discuss how to align state regulations with these new federal provisions. Until they do, taxpayers are encouraged to proceed with caution and adjust their tax payments accordingly. The state Department of Revenue indicated that it will provide updated guidance once lawmakers address the relevant issues. It seems like everyone is just waiting, including the taxpayers of South Carolina. If you need a full list of the changes, you can find it online.

Caitlin, what has the Department of Revenue said about concerns from the public? Well, Cindy, we’ve heard from many taxpayers who filed their returns only to see them denied. We contacted the Department of Revenue, and they clarified that these denials weren’t linked to the current issues. They encourage anyone having difficulties paying their taxes to reach out for assistance.