Is South Carolina following OBBB?
South Carolina has not conformed to the federal law known as the One Big Beautiful Bill (OBBB).
OBBB allows additional deductions for tips, overtime, car loan interest, and an enhanced deduction for seniors. Right now, South Carolina is in legislative session and has not decided whether to adopt those federal rules.
What does this mean for you?
If South Caroline conforms, these deductions will reduce your taxable income on your state return. If they do not conform, these deductions from your federal return will be added back to your taxable income. You can file your South Carolina return now assuming non-conformity. If the state ends up conforming, you will need to amend your return to get the full deductions.
OBBB allows additional deductions for tips, overtime, car loan interest, and an enhanced deduction for seniors. Right now, South Carolina is in legislative session and has not decided whether to adopt those federal rules.
What does this mean for you?
If South Caroline conforms, these deductions will reduce your taxable income on your state return. If they do not conform, these deductions from your federal return will be added back to your taxable income. You can file your South Carolina return now assuming non-conformity. If the state ends up conforming, you will need to amend your return to get the full deductions.
