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H. 4553
STATUS INFORMATION
General Bill
Sponsors: Rep. Bales
Document Path: l:\council\bills\bbm\10261htc08.doc
Introduced in the House on January 24, 2008
Currently residing in the House Committee on Ways and Means
Summary: Income tax deduction for retirement income
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 1/24/2008 House Introduced and read first time HJ-3 1/24/2008 House Referred to Committee on Ways and Means HJ-4
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 12-6-1170, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE INDIVIDUAL INCOME TAX DEDUCTION FOR RETIREMENT INCOME AND THE DEDUCTION ALLOWED ALL INDIVIDUALS WHO HAVE ATTAINED THE AGE OF SIXTY-FIVE YEARS, SO AS TO INCREASE THE MAXIMUM RETIREMENT INCOME DEDUCTION ALLOWED FROM THREE THOUSAND TO THIRTY THOUSAND DOLLARS AND TO INCREASE THE DEDUCTION ALLOWED FOR OTHER TYPES OF INCOME FOR INDIVIDUALS WHO HAVE ATTAINED THE AGE OF SIXTY-FIVE YEARS FROM FIFTEEN THOUSAND DOLLARS TO THIRTY THOUSAND DOLLARS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-6-1170 of the 1976 Code, as last amended by Act 161 of 2005, is further amended to read:
"Section 12-6-1170. (A)(1) An individual taxpayer who is the original owner of a qualified retirement account is allowed an annual deduction from South Carolina taxable income of not more than three thirty thousand dollars of retirement income received. Beginning in the year in which the taxpayer reaches age sixty-five, the taxpayer may deduct not more than ten thousand dollars of retirement income that is included in South Carolina taxable income.
(2) The term 'retirement income', as used in this subsection, means the total of all otherwise taxable income not subject to a penalty for premature distribution received by the taxpayer or the taxpayer's surviving spouse in a taxable year from qualified retirement plans which include those plans defined in Internal Revenue Code Sections 401, 403, 408, and 457, and all public employee retirement plans of the federal, state, and local governments, including military retirement.
(3) A surviving spouse receiving retirement income that is attributable to the deceased spouse shall apply this deduction in the same manner that the deduction applied to the deceased spouse. If the surviving spouse also has another retirement income, an additional retirement exclusion is allowed.
(4) The department may require the taxpayer to provide information necessary for proper administration of this subsection.
(B) Beginning for the taxable year during which a resident individual taxpayer attains the age of sixty-five years, the resident individual taxpayer is allowed a deduction from South Carolina taxable income received in an amount not to exceed fifteen thirty thousand dollars reduced by any amount the taxpayer deducts pursuant to subsection (A) not including amounts deducted as a surviving spouse. If married taxpayers eligible for this deduction file a joint federal income tax return, then the maximum deduction allowed is fifteen thirty thousand dollars in the case when only one spouse has attained the age of sixty-five years and thirty sixty thousand dollars when both spouses have attained such age."
SECTION 2. This act takes effect upon approval by the Governor and applies for taxable years beginning after 2007.
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