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Save gas receipts for state deduction

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By Gregory A. Summers

The receipt available with fuel fill-ups is no longer an insignificant slip of paper to discard.
State taxpayers have a chance to save a little extra money by hanging onto fuel receipts.
On Jan. 1, a new income tax credit went into effect to offset the gas tax increase passed by state lawmakers last spring, according to a news release from the S.C. Department of Revenue.
In May, the General Assembly passed a plan that raises the state’s gas tax by a total of 12 cents a gallon over six years (two cents a year) to create a long-term funding source for road repairs across the state.
The plan also increases other driving fees and the new income tax credit was approved as part of that legislation.
Taxpayers will be eligible to claim the fuel income tax credit for the first time when filing their 2018 state income tax returns at the beginning of 2019.
Here’s what you need to know to claim the credit:
• Only resident taxpayers are eligible.
• Up to two private passenger motor vehicles can be considered for the credit (motorcycles included).
• Taxpayers must save fuel receipts, as well as invoices from preventative maintenance costs (oil changes and new tires) purchased only in South Carolina. Fuel purchased and maintenance done outside the state can’t be included.
• Fuel receipts or credit card statements must show the number of gallons purchased.
• Maintenance invoices must specify the car model, amount, and type of preventative maintenance.
• Taxpayers will calculate and claim the credit on Form I-385, which will be available in January 2019.
For more information, visit https://dor.sc.gov.
 
Follow reporter Greg Summers on Twitter @GregSummersTLN or contact him at (803) 283-1156.