The "Eliminate the Marriage Tax Penalty Act" aims to amend the South Carolina Code of Laws by adding Section 12-6-525. This new provision allows married taxpayers who file a joint federal return to calculate their South Carolina income tax as if each spouse filed as a single taxpayer, provided that this method results in a lower cumulative tax owed than if they had filed jointly. If the single-filing calculation yields a lower tax amount, the excess owed from the joint return can be reduced accordingly. The bill clarifies that married taxpayers cannot choose a different filing status for their South Carolina tax return.

The act will take effect upon approval by the Governor and will first apply to tax years beginning after 2024. The South Carolina Department of Revenue is also granted the authority to adopt necessary rules and regulations to implement this new provision.

Statutes affected:
12/05/2024: 12-6-525
02/05/2025: 12-6-525
Latest Version: 12-6-525
12/06/2024: 12-6-525