2023 – 2024 Senior Citizen State of South Carolina and Federal Tax Deductions
For senior citizens, there are a variety of tax deductions that you may be able to claim on both your South Carolina and Federal Tax Filings. For those filing their taxes, looking at the overall tax snapshot of your state and federal taxes is essential for perspective. To ensure you’re getting the most out of your money, begin by looking at your income taxes and state and sales tax rates, then progress to social security, retirement accounts, property, additional exemptions, deductions, and refunds. You may be eligible for credits that earn you a larger refund.
South Carolina Tax Deductions for Seniors
Do you have to file a South Carolina Return if you are age 65 and older?
You are not required to file a South Carolina Income Tax return if you are a South Carolina resident age 65 or older and:
- Your filing status is a single, qualifying widow(er), or head household and your gross income is less than the federal gross income filing requirement plus the age 65 and older deduction
- Your filing status is married filing separately, you and your spouse do not itemize deductions, and your gross income is less than the federal gross income filing requirement plus the age 65 and older deduction, or
- Your filing status is married filing jointly and your combined income with your spouse is less than the federal gross income filing requirement plus your combined age 65 and older deduction
South Carolina Has Zero Social Security Tax
South Carolina is one of the many states that does not impose a tax on social security benefits. Taxable Social Security and Railroad Retirement on your federal tax return are exempt from South Carolina Income Tax. However, withdrawals from retirement accounts and public/personal income are partially taxed.
Deduct Up to $15,000 from Income Taxes
A $15,000 income tax deduction is available to South Carolina residents over 65. It applies to all forms of retirement income, including 401(k) plans, IRAs, and pension plans. This tax deduction is an excellent way for South Carolina residents to save money in retirement.
Deduct all military retirement pay from Income Taxes
All military retirement pay is exempt from South Carolina Individual Income Tax. The Workforce Enhancement and Military Recognition Act was signed this year to ensure all military retirement pay that is included in South Carolina taxable income from the state’s Income Tax, no matter the taxpayer’s age. This deduction also can be claimed by a surviving spouse receiving military retirement income from their deceased spouse.
Source: South Carolina Department of Revenue FAQs
South Carolina Property Tax Benefits, Deductions, and Exemptions for Seniors 65 and Older
Low Property Taxes
South Carolina has one of the lowest average effective property tax rates in the country, at just 0.55%. In addition to paying this low rate, South Carolina seniors who’ve lived in the state for over a year can benefit from a “homestead exemption,” which exempts them from property taxes on the first $50,000 of their home’s value.
Zero Property Tax in Active Adult Community Living and Senior Retirement Communities
For those 55+ years of age and above, living in an active adult community and senior retirement community is an excellent option. Depending on the home agreement or a contract, and residents may be able to pay zero property tax on that residence. In to zero property tax, some seniors will find that living in a retirement community is cheaper after comparing monthly expenditures (home payment, home maintenance, and repairs, lawn maintenance, dining/groceries, electricity, water, transportation, internet, etc.)
Top-Rated Senior Living in South Carolina
One of the top-rated communities in the state is Summit Hills, a Continuing Care Retirement Community (CCRC) located in Spartanburg, SC. As a CCRC, Summit Hills proudly offers a full continuum of care including 55+ active adult living, independent living, assisted living, memory care, skilled nursing, and senior rehabilitation. The benefit of living in a community like Summit Hills is that should your needs change, there is no need to relocate as you’ll be at home in a community of friends and have easy access to the care you require in your own home. To learn more about Summit Hills, click here.
South Carolina State Income Tax Rate 2023
The State of South Carolina has a simplified income tax structure that follows federal income tax laws. South Carolina accepts the adjustments, exemptions, and deductions allowed on your federal tax return with few modifications. Your federal taxable income is the starting point in determining your state income tax liability. Individual income tax rates range from 0% to a top rate of 6.4% on taxable income.
Source: South Carolina Department of Revenue – Individual Income Tax
South Carolina State and Local Sales Tax Rate
South Carolina has a state sales tax of 6% and allows local governments to collect sales tax up to 3%. As of January 2024, the average combined rate is 7.694%.
Source: South Carolina: Sales Tax Handbook
State of South Carolina and Federal Tax Resources:
State of South Carolina Official WebsiteSouth Carolina Department of Revenue
State of South Carolina – Department of Motor Vehicles (DMV)
United States Internal Revenue Service (IRS)
United States Department of the Treasury
Federal Tax Deductions for Seniors
For those who are 65 and older, in addition to state and local tax deductions there are federal tax deductions and exclusions that may apply to your yearly tax filing. Some of the top deductions are listed below:
What is the Standard Federal Tax Deduction for Seniors Over 65?
The standard tax deduction is a set dollar amount that reduces your overall taxable income. This can vary based on your filing status, age, whether you are blind, or if another taxpayer can claim you as a dependent. Below you will find information for the standard deduction plus an increased deduction for seniors over the age of 65.
2023 Senior Citizen-Standard Income Tax Deduction
In the 2023 tax year (filed in 2024), the standard deduction is $13,850 for Single filers and Married Filing Separately, $27,700 for Married Filing Jointly and Surviving Spouses, and $20,800 for the Head of Household.
For those 65 years of age or legally blind, the standard deduction was increased in 2023 to $1,850 for Single filers or Head of Household, and $1,500 (per person) for married filing jointly, married filing separately, and Surviving Spouses.
2023 Standard Tax Deduction for Seniors Over 65 Years of Age with the Standard Deduction Increase*:
Filing Status | 2023 Standard Deduction Under 65 Years of Age | 2023 Additional Standard Deduction Over 65 Years of Age | 2023 Total Standard Deduction Over 65 Years of Age* |
Single (Unmarried and not a Surviving Spouse) | $13,850 | $1,850 | = $15,700 |
Married Filing Separately | $13,850 | $1,500 | = $15,350 |
Married Filing Jointly | $27,700 | $1,500 + $1,500 (One deduction for each spouse) | = $30,700 |
Surviving Spouses | $27,700 | $1,500 + $1,500 | = $30,700 |
Head of Household | $20,800 | $1,850 | = $22,650 |
* If you are legally blind, there are additional deductions that apply. Check IRS Form 1040 or 1040A and speak with your licensed tax professional to learn more.
To check your 2023 Standard Deduction, visit the Interactive Tax Assistant (ITA) at IRS.gov
2024 Senior Citizen Standard Income Tax Deduction
In the 2024 tax year (filed in 2025), the standard deduction is $14,600 for Single Filers and Married Filing Separately, $29,200 for Married Filing Jointly and Surviving Spouses, and $21,900 for the Head of Household.
For those 65 years of age or legally blind, the standard deduction was increased in 2024 to $1,950 for Single filers or Head of Household, and $1,550 for Married Filing Jointly, Married Filing Separately, and Surviving Spouses.
2024 Standard Tax Deduction for Seniors Over 65 Years of Age with the Standard Deduction Increase*:
Filing Status | 2024 Standard Deduction Under 65 Years of Age | 2024 Additional Standard Deduction Over 65 Years of Age | 2024 Total Standard Deduction Over 65 Years of Age* |
Single (Unmarried and not a Surviving Spouse) | $14,600 | $1,950 | = $16,550 |
Married Filing Separately | $14,600 | $1,550 | = $16,150 |
Married Filing Jointly | $29,200 | $1,550 + $1,550 (One deduction for each spouse) | = $32,300 |
Surviving Spouses | $29,200 | $1,550 + $1,550 | = $32,300 |
Head of Household | $21,900 | $1,950 | = $23,850 |
* If you are legally blind, there are additional deductions that apply. Check IRS Form 1040 or 1040A and speak with your licensed tax professional to learn more.
Each situation is different, but if the standard deduction is less than your itemized deductions, it’s better to itemize and save money. If your standard deduction is more than your itemized deductions, it’s better to opt for the standard deduction. Speak with your licensed tax professional to determine which deduction is correct for you.
Medical and Dental Federal Tax Deductions
For retirees, medical, healthcare, and dental expenses are often one of the largest expenses. According to IRS.gov, if you itemize your deductions for a taxable year on Schedule A (Form 1040 – Itemized Deductions), you may be able to deduct expenses you paid that year for medical and dental care for yourself, your spouse, and your dependents. You may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income. You figure the amount you’re allowed to deduct on Schedule A (Form 1040). Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body.These deductions include prescription drugs, nursing home care, long-term care insurance premiums, insurance premiums (including Medicare), and additional out-of-pocket healthcare expenses. For a full list of acceptable tax deductions, visit IRS.gov’s Medical and Dental Expenses here.
Is Assisted Living Tax Deductible?
For those who are in an assisted living retirement community, there may be medical tax deductions that are associated with the care that is received during that tax year.
Residents of assisted living may be entitled to deduct as a medical expense a portion of the monthly service fees and entrance fees which represent medical care in the year paid. The Internal Revenue Code (IRS) does not contain detailed guidance on how to compute this, therefore each resident should consult their licensed tax professional as to the ultimate deduction and disclosure decisions based on their individual situation.
Monthly service fees paid for assisted living and skilled nursing care may be deducted as medical expenses except those charges for non-medical items such as beauty shop charges or guest meals. This treatment is allowable provided that residents require the services, are chronically ill and the services are provided under a plan of care prescribed by a licensed health care practitioner (IRC Section 7702B(c)).
A resident must meet certain criteria to be eligible for a 100% medical deduction for monthly services fees paid. The resident must be unable to perform, without substantial assistance from another individual, at least two activities of daily living for a period of at least 90 days, or the resident requires substantial supervision to protect their health and safety due to severe cognitive impairment. Activities of daily living include eating, toileting, transferring, bathing, dressing, and continence. The services must also be provided pursuant to a plan of care prescribed by a licensed health care practitioner.
Federal Tax Resources:
United States Internal Revenue Service (IRS)United States Department of the Treasury
IRS Standard Deduction Calculator
IRS Medical and Dental Expenses
Disclaimer: The information above should function as a starting point for your tax research but should not be substituted for direct advice from a licensed tax professional. State and Federal taxes are ever-changing and this list may not be current or up to date with the current tax laws, deductions, relief programs, rebates, requirements, etc. Additional tax deductions, credits, and relief programs may be available depending on your town and county of residence within the State of South Carolina. Check with your local municipality’s tax department, the South Carolina Department of Revenue, the U.S. Internal Revenue Service (IRS) and your licensed tax professional to learn more about programs that are available for the current tax year.