Tax Season Kicks Off: What South Carolina Taxpayers Need to Know

January 27, 2025

The Internal Revenue Service (IRS) officially begins accepting tax returns today, January 27, 2025, marking the start of the tax filing season. Taxpayers have until April 15, 2025, to submit their federal income tax returns.

South Carolina Tax Updates

For residents of South Carolina, there are notable changes to be aware of this tax season:

  • Reduced Income Tax Rate: The state’s top marginal individual income tax rate has decreased to 6.2% for the 2024 tax year, down from 6.4% in 2023.
  • Increased Dependent Exemption: The dependent exemption amount has increased to $4,790 for tax year 2024, up from $4,610. This exemption applies to each eligible dependent, including both qualifying children and relatives.

Filing Options

The IRS has expanded its Direct File program, now available to taxpayers in 25 states, including South Carolina. This free service allows eligible individuals to file their federal tax returns directly with the IRS without the need for third-party software. Direct File opens today, January 27.

Additionally, the IRS Free File program is available for taxpayers with an Adjusted Gross Income (AGI) of $84,000 or less in 2024. This service provides access to free tax preparation software from trusted IRS partners.

Tips for a Smooth Filing Experience

  • Organize Your Documents: Gather all necessary tax documents, including W-2s, 1099s, and records of deductible expenses, to ensure an accurate and complete return.
  • Consider Electronic Filing: Filing electronically and opting for direct deposit can expedite the refund process.
  • Stay Informed: Keep abreast of any additional state-specific tax changes by visiting the South Carolina Department of Revenue’s website.

By staying informed and utilizing available resources, South Carolina taxpayers can navigate the 2025 tax season with confidence.