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 they were filing as single taxpayers, 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 can be deducted from their joint return. However, it is specified that married taxpayers cannot choose a different filing status for their South Carolina tax return.

The act is designed to alleviate the financial burden often referred to as the "marriage tax penalty," which can occur when married couples end up paying more in taxes than they would as single filers. The bill will take effect upon the Governor's approval and will first apply to tax years beginning after 2024. The South Carolina Department of Revenue is also granted the authority to create necessary regulations to implement this new tax provision.

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