State Income Tax Savings

The amount of reduction in South Carolina income taxes depends on your tax bracket as shown in the two tables below:

South Carolina Tax Bracket Rates (for 2007)
Annual Taxable Income
The South Carolina Department of Revenue Tax tables may change annually. Use this table as an approximation. Do not use this table to compute your South Carolina tax liability.
Over But Not Over Calculation
$0 $2,630 $0
$2,630 $5,260 3% times the amount less $79
$5,260 $7,890 4% times the amount less $131
$7,890 $10,520 5% times the amount less $211
$10,520 $13,150 6% times the amount less $316
$13,150+ N/A
7% times the amount less $448

Effects of Catastrophe Savings Account Contributions & Withdrawals on Taxable Income
Action Federal South Carolina
Homeowners’ Contribution to Catastrophe Savings Account          
No Effect Deduct on Form SC 1040
Interest on Savings Account            Taxable Not Taxable (Deduct on Form SC 1040)
Withdrawals for Ineligible Expenses           No Effect Taxable and subject to 2.5% additional tax (Subject to certain exceptions)
Withdrawals for Qualified Catastrophe Expenses    
No Effect Not Taxable