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TO AMEND SECTION 12-6-1170, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RETIREMENT INCOME DEDUCTION AND THE DEDUCTION ALLOWED PERSONS WHO HAVE ATTAINED AGE SIXTY-FIVE FOR PURPOSES OF THE STATE INDIVIDUAL INCOME TAX, SO AS TO ALLOW AN EXEMPTION EQUAL TO ONE HUNDRED PERCENT OF TAXABLE INCOME FOR TAXPAYERS WHO HAVE ATTAINED THE AGE OF SIXTY-FIVE YEARS, TO ALLOW THIS EXEMPTION FOR MARRIED PERSONS FILING A JOINT FEDERAL INCOME TAX RETURN WHEN ONE SPOUSE HAS NOT ATTAINED THE AGE OF SIXTY-FIVE YEARS, AND TO ALLOW THE EXEMPTION FOR A SURVIVING SPOUSE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-6-1170(B) of the 1976 Code is amended to read:
"(B)(1) Beginning for the taxable year during which a resident individual taxpayer attains the age of sixty-five years, and thereafter, the resident individual taxpayer is allowed a deduction from South Carolina taxable income received in an amount not to exceed fifteen 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 thousand dollars in the case when only one spouse has attained the age of sixty-five years and thirty thousand dollars when both spouses have attained such age equal to one hundred percent of South Carolina taxable income. This exemption extends to all income reported on a joint federal income tax return filed by the taxpayer regardless of the age of the taxpayer's spouse.
(2) A taxpayer otherwise ineligible because of age for the exemption allowed by this subsection nevertheless is allowed the exemption if the taxpayer's deceased spouse at the time of death was eligible, or if surviving would be eligible, for the exemption allowed by this subsection and the taxpayer has not remarried."
SECTION 2. This act takes effect upon approval by the Governor and applies for taxable years beginning after 2005.
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