2018-01-03 / Local News

Save those gas receipts and get a tax deduction

By SCOTT POWELL
Ledger Staff Writer

State taxpayers can save a little extra money on their future tax bills by keeping their receipts each time they fill up their vehicles’ gas tanks.

A new state income tax credit went into effect Jan. 1, 2018, to offset a gas tax increase state lawmakers approved to provide additional money to be applied toward road repairs and improvements. Last May, lawmakers agreed to increase the state’s gas tax by two cents a gallon annually for the next five years.

To offset the increase, state residents will be allowed to claim a fuel income tax credit when they file their state taxes in 2019. Interested taxpayers are required to save their receipts from all gas purchases this year along with invoices from vehicle preventive maintenance costs, such as oil changes and new tires.

Fuel receipts or credit card statements must show the number of gallons purchased in South Carolina during the tax year. The state Department of Revenue said maintenance invoices must show the car model, amount and type of preventive maintenance work performed.

Fuel purchased outside of South Carolina and preventive maintenance performed outside of the state cannot be included. While the gas receipts should not be included with the tax return, the information must be readily available in case a taxpayer’s return is audited.

“The South Carolina Department of Revenue is committed to keeping taxpayers informed on this new legislation and how it can benefit them,” director Hartley Powell said in a news release. “We are here to assist all South Carolina taxpayers in understanding and easily complying when claiming the new motor fuel tax credit.”

A maximum of two vehicles or motorcycles registered to a South Carolina resident are eligible for the credit.

For more information, visit the state Department of Revenue website at:

www.dor.sc.gov.

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