The "Eliminate the Marriage Tax Penalty Act" aims to amend the South Carolina Code of Laws by introducing 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. This option is available if the cumulative tax owed by both taxpayers is less than what they would owe if they filed jointly. If they choose this method, any excess amount owed can be deducted from their joint return.

Additionally, the bill clarifies that married taxpayers who file jointly cannot select a different filing status for their South Carolina tax return. The South Carolina Department of Revenue is authorized to create necessary regulations to implement this new provision. The act will take effect upon the Governor's approval and will first apply to tax years beginning after 2024.

Statutes affected:
01/16/2025: 12-6-525
Latest Version: 12-6-525