Tax rebate recipients who received 1099s

Thousands of taxpayers who received $50 tax rebates last year are receiving 1099s from the South Carolina Department of Revenue. But that doesn’t mean they owe state taxes on the rebate. Generally mailed in January each year, a 1099 is a record showing you received income from someone other than your employer. This form is used to calculate income to report on tax returns. A 1099-G is the form used by the SCDOR to notify taxpayers of refunds or rebates. If you received a South Carolina tax refund or rebate during 2019 and you itemized your deductions on your 2018 return, you should receive a 1099-G from the SCDOR. If you claimed the standard deduction on your 2018 federal return, you will not report 2018 state Income Tax refunds, including the $50 rebate, in your gross income on your 2019 federal return. If you itemized your 2018 deductions, include the $50 rebate in your gross income to the extent you received a federal tax benefit from the 2018 deduction. You will not pay any South Carolina tax on the rebate. The SCDOR issued 1,279,935 rebate checks by December 2, 2019 for a total of $63,996,750.