As a resident of South Carolina, there are many ways you can save money on your taxes. Coastal Tax and Accounting has compiled a list of five strategies that may help you reduce your tax burden:
1. SC Active Trade or Business Deduction
If you own a business in South Carolina, you may be eligible for the SC Active Trade or Business Deduction. This deduction allows business owners to pay a lower tax rate on their income than individual taxpayers. SC taxes business income at 3% and individual income at 7%. Coastal Tax and Accounting has helped many clients save hundreds of thousands of dollars on this deduction.
2. 529 Contributions to a College Savings Account
If you’re saving for your child’s college education, consider contributing to a 529 plan. In South Carolina, contributions to a 529 plan are tax-deductible up to a certain amount, and the earnings generated are tax-free. Futurescholar.com is a great resource for South Carolina residents looking to open a 529 plan.
3. Motor Fuel Tax Credit
The Motor Fuel Tax Credit is a state tax credit that many clients miss out on. This credit can increase your refund by approximately $50 per vehicle in your household. If you’re eligible, make sure to claim this credit when you file your taxes.
4. Teacher Expenses Deduction
If you’re a teacher in South Carolina, you may be eligible for a deduction of up to $300 per year for any out-of-pocket expenses you’ve incurred for classroom materials. This deduction can help offset the cost of supplies and materials you purchase for your students.
5. Two-Wage Earners’ Tax Credit
Couples who are Married Filing Jointly and both work are eligible for a tax credit of up to $327 per year. This credit can help reduce your tax liability and increase your refund.
By taking advantage of these tax-saving strategies, you may be able to reduce your tax burden and keep more money in your pocket. Coastal Tax & Accounting can help you navigate the complex world of tax laws and regulations to ensure that you’re taking advantage of all the deductions and credits available to you. Contact us today at 843.549.5561 to schedule a consultation and learn how we can help you save on your taxes.