South Carolina General Assembly
125th Session, 2023-2024

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Indicates Matter Stricken
Indicates New Matter

S. 20

STATUS INFORMATION

General Bill
Sponsors: Senators Jackson and McLeod
Document Path: LC-0024SA23.docx

Introduced in the Senate on January 10, 2023
Currently residing in the Senate Committee on Finance

Summary: Income Tax Deduction for Retirement Income

HISTORY OF LEGISLATIVE ACTIONS

Date Body Action Description with journal page number
11/30/2022 Senate Prefiled
11/30/2022 Senate Referred to Committee on Finance
1/10/2023 Senate Introduced and read first time (Senate Journal-page 23)
1/10/2023 Senate Referred to Committee on Finance (Senate Journal-page 23)

View the latest legislative information at the website

VERSIONS OF THIS BILL

11/30/2022



A bill

to amend the South Carolina Code of Laws by adding Section 12-6-1140 so as to PROVIDE AN ALLOWABLE DEDUCTION FOR CERTAIN RETIREMENT INCOME THAT RECEIVES A PENALTY FOR PREMATURE DISTRIBUTION.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1.   Section 12-6-1140 of the S.C. Code is amended by adding an item to read:

   (15)(a)   income that would be considered retirement income, pursuant to Section 12-6-1170, except that it is penalized for premature distribution by the Internal Revenue Service.

      (b)(i)   Notwithstanding any other provision of law, if a taxpayer claims a deduction pursuant to Section 12-6-1170, then the deduction allowed by this section must be reduced by the amount the taxpayer deducts pursuant to Section 12-6-1170; however, this subitem does not apply if the deduction claimed pursuant to Section 12-6-1170 is claimed by a surviving spouse.

         (ii)   In the case of married taxpayers who file a joint federal income tax return, the reduction required by subsubitem (i) applies to each individual separately, so that the reduction only applies to the amount the individual claiming the deduction pursuant to Section 12-6-1170 otherwise could have claimed pursuant to this section if the individual had not filed a joint return.

      (c)   The deduction allowed pursuant to this item only applies to an individual who has owned the retirement account in which he incurs the penalty for premature distribution for a period of at least thirty years.

SECTION 2.   This act takes effect upon approval by the Governor and first applies to income tax years after 2022.

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This web page was last updated on May 28, 2024 at 12:17 PM