Starting in January, people in SC can save gas receipts to get a tax credit
(WCIV) -- Starting in January 2018, you can save your receipts to claim new motor fuel income tax credit.
The South Carolina Department of Revenue released guidance to help taxpayers prepare. The tax credit is meant to offset the increased motor fuel user fee established by the South Carolina Infrastructure and Economic Development Reform Act.
Taxpayers can claim the tax credit when filing their state income tax returns starting in 2019.
The Department of Revenue has released a list of what you need to know.
• This is a refundable credit on up to two vehicles per resident taxpayer and is provided to offset the motor fuel user fee increase.
• To calculate and claim the credit amount and for personal tax records, taxpayers must save receipts and invoices from:
o Fuel purchases beginning in January 2018.
o Vehicle preventative maintenance costs beginning in January 2018.
• Taxpayers receive a credit on the lesser amount paid for either the motor fuel user fee increase or the vehicle’s preventative maintenance.
• Taxpayers will calculate and claim the credit on Form I-385 when filing state income tax returns in 2019. (This form will be available in January 2019.)