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Author Topic: Tax Burden for South Carolina Retired Vets ► As Apr 2015  (Read 1736 times)

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Offline DoggyDaddy

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Tax Burden for South Carolina Retired Vets ► As Apr 2015
« on: April 15, 2015, 09:01:04 pm »
Tax Burden for South Carolina Retired Vets ► As Apr 2015
Many people planning to retire use the presence or absence of a state income tax as a litmus test for a retirement destination. This is a serious miscalculation since higher sales and property taxes can more than offset the lack of a state income tax. The lack of a state income tax doesn’t necessarily ensure a low total tax burden. States raise revenue in many ways including sales taxes, excise taxes, license taxes, income taxes, intangible taxes, property taxes, estate taxes and inheritance taxes. Depending on where you live, you may end up paying all of them or just a few. Following are the taxes you can expect to pay if you retire in South Carolina.

Sales Tax
State Sales Tax:
6% (prescription drugs and unprepared food items exempt); 25 counties impose an additional 1% local option sales tax; a number of counties impose a 2% sales tax or 3%. Seniors 85 and older pay 5%. Gasoline Tax: 35.15 cents/gallon (Includes all taxes)
Diesel Fuel Tax: 41.15 cents/gallon (Includes all taxes) Cigarette Tax: 57 cents/pack of 20

Personal Income Tax
Tax Rate Range: Low – 0%; High – 7%; No tax on the first $2,630 of taxable income in tax year 2007. Income Brackets: Six. Lowest – $2,880; Highest – $14,400. Personal Exemptions: Single – $3,950; Married – $7,900; Dependents – $3,950. State allows personal exemption or standard deductions as provided in the Internal Revenue Code.
Standard Deduction: Single – $5,700; Married filing jointly – $11,400 Medical/Dental Deduction: Federal amount Federal Income Tax Deduction: None Retirement Income Taxes: Retirement income is taxed. Social Security is exempt.   Under age 65, $3,000 in pension income is exempt. If you are 65 or older you may exempt $15,000 of retirement income. You can take this deduction for income received from any qualified retirement plan. If both spouses receive retirement income, each spouse is entitled to an individual deduction. The $15,000 deduction must be offset by any other retirement deduction that is claimed. A surviving spouse may continue to take a retirement deduction on behalf of the deceased spouse. Some taxpayers age 65 and older may not have to file a tax return if they meet certain conditions.
Retired Military Pay: Retirees with 20 or more years of active duty can deduct up to $3,000 annually until age 65 and up to $10,000 per year after age 65. This deduction extends to the surviving spouse. Pension or retirement income received for time served in the National Guard or Reserve components is not taxable. Survivor benefits are taxed following federal tax rules.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of
Sales Taxes
Personal Income Taxes total protection. VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes. Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Tax
Property tax is assessed and collected by local governments.   Both real and personal property are subject to tax. The market value of a legal residence and up to 5 acres of surrounding land is assessed at 4%.   For homeowners 65 and older, the state’s homestead exemption allows the first $50,000 of their property’s fair market value to be exempt from local property taxes. South Carolina imposes a casual excise tax of 5% on the fair market value of all motor vehicles, motorcycles, boats, motors and airplanes transferred between individuals.

Inheritance and Estate Tax:
There is no inheritance tax or estate tax. For further information, visit the South Carolina Department of Revenue site www.sctax.org or call 800- 763-1295. If you are planning to move to South Carolina, some helpful information is available at http://www.lex-co.sc.gov/departments/DeptAH/auditor/Documents/PUB192905.pdf.
[Source: http://www.retirementliving.com Apr 2015 ++]
Joe Kleinsmith
All State VFW Post 1716 Cmdr (1998-2000)
Cpt, VFW Post Honor Guard, Retired (1991-2009)
SC-SB County Council Cmdr (1996-1997)
SFC, US Army, Retired (1971-1991)
Full Time RV'er
www.vfwwebcom.org/ca/post1716
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