Current Status Bill Number:3565 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970227 Primary Sponsor:McLeod All Sponsors:McLeod Drafted Document Number:jic\5475htc.97 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Income tax deductions, individual; provided for aging not to exceed five thousand dollars, Taxation, exemptions
Body Date Action Description Com Leg Involved
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House 19970227 Introduced, read first time, 30 HWM
referred to Committee
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TO AMEND SECTION 12-6-1140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME FOR PURPOSES OF THE STATE INDIVIDUAL INCOME TAX, SO AS TO ALLOW INDIVIDUAL TAXPAYERS AGED SIXTY-FIVE YEARS OR OLDER TO DEDUCT NOT MORE THAN FIVE THOUSAND DOLLARS OF SOUTH CAROLINA EARNED INCOME RECEIVED IN A TAXABLE YEAR AND TO LIMIT THE APPLICATION OF THIS DEDUCTION; AND TO AMEND SECTION 12-8-1040, RELATING TO WITHHOLDING EXEMPTION CERTIFICATES, SO AS TO DELETE THE REQUIREMENT FOR ANNUAL REFILING OF THE CERTIFICATE FOR TAXPAYERS SIXTY-FIVE YEARS OF AGE OR OLDER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-6-1140 of the 1976 Code, as amended by Section 57, Part II, Act 145 of 1995, is further amended by adding an appropriately numbered item to read:
"( ) Not more than five thousand dollars of South Carolina earned income received in a taxable year by an individual taxpayer who before or during that taxable year has attained the age of sixty-five years. No deduction is allowed if any portion of the taxpayer's social security benefits or railroad retirement benefits are includable in the taxpayer's adjusted gross income reported on the taxpayer's federal income tax return. For a taxpayer who does not receive social security or railroad retirement benefits, no deduction under this section is allowed if the taxpayer's federal modified adjusted gross income exceeds the base amount. For purposes of this section:
(a) 'modified adjusted gross income' and 'base amount' have the meanings provided in Internal Revenue Code Section 86; and
(b) 'South Carolina earned income' is as defined in Section 12-6-3330(B)(2)."
SECTION 2. Section 12-8-1040 of the 1976 Code, as added by Act 76 of 1995, is amended by adding a paragraph at the end to read:
"If the taxpayer filing the certificate is sixty-five years of age or older, the withholding exemption certificate remains valid until withdrawn by the taxpayer."
SECTION 3. Upon approval by the Governor, this act is effective for taxable years beginning after 1996.