Save Your Gas Receipts for Tax Credit!
CHARLESTON, SC (WTAT-TV) — In January, you may want to start saving your gas receipts to claim a brand-new fuel income tax credit.
The new tax credit will go into effect in January of 2018 to help offset the increased gas tax passed earlier this year.
Taxpayers will be able to claim the motor fuel income tax credit when filing their state income tax returns beginning in 2019. This credit will be applied to your 2018 SC Individual Income Taxes which are filed in 2019.
“The South Carolina Department of Revenue is committed to keeping taxpayers informed on this new legislation and how it can benefit them. We are here to assist all South Carolina taxpayers in understanding and easily complying when claiming the new motor fuel tax credit,” said Hartley Powell, SCDOR director, in a press release.
Here’s 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.)