What SC taxpayers need to know about Trump bill’s possible impact on deductions, refunds & more
The South Carolina General Assembly has not officially addressed state income tax rules based on the federal government’s One Big Beautiful Bill, but in the meantime, the Department of Revenue has issued some guidance for filing 2025 state taxes.
The guidance alerts South Carolina taxpayers how the federal rules may impact them.
The federal legislation was passed after the South Carolina legislature adjourned.
“Therefore, until the South Carolina Legislature addresses conformity, South Carolina taxpayers will need to adjust their return if the following 2025 federal provisions are claimed on their federal return,” a Department of Revenue statement reads.
Here’s what the Department of Revenue said:
Federal tax changes
Standard Deduction. Increases by $750 for single, $1,125 for head of household, and $1,500 for married filing jointly.
Senior Deduction. An additional $6,000 deduction is available for everyone older than 65 and phases out for taxpayers with modified adjusted gross income over $75,000 and $150,000 for joint filers.
Tips. Qualified tips up to $25,000 are deductible and phase out for taxpayers with modified adjusted gross income over $150,000 and $300,000 for joint filers.
Overtime. Deductible up to $12,500 and $25,000 for joint filers and phases out for those with modified adjusted gross income over $150,000 and $300,000 for joint filers.
Car Loan Interest. Maximum annual deduction is $10,000 and phases out for taxpayers with modified adjusted gross income over $100,000 and $200,000 for joint filers
State and Local Tax Deduction. Up to $40,000 for state and local taxes for those who itemize.
Research and Experimental Expenditures. Taxpayers may deduct domestic expenses paid or incurred during the year and may deduct unamortized amounts paid or incurred in years before 2025. Foreign expenses are amortized over 15 years.
Business Assets. Amortization amount increased to $2.5 million from $1 million.
This story was originally published January 16, 2026 at 5:30 AM.