The South Carolina Department of Revenue (SCDOR) has announced an automatic extension for all 2025 Individual Income Tax returns. The decision comes as the South Carolina Legislature debates House Bill 3368, a measure intended to align state tax laws with the current Internal Revenue Code and the federal One Big Beautiful Bill Act.
Taxpayers do not need to take any formal action or file additional paperwork to qualify for this extension. The SCDOR indicated that further guidance will be provided for those who have already submitted their 2025 returns once the pending legislation is finalized.
Deadline to Pay Remains April 15
While the deadline to file paperwork has been pushed back, the SCDOR emphasized that this does not extend the deadline to pay taxes owed. To avoid penalties, taxpayers must pay at least 90% of their 2025 tax liability by April 15, 2026. Financial experts note that the proposed legislation is expected to decrease tax liabilities rather than increase them, meaning some residents may see larger refunds if the bill passes.
For those navigating the delay, several strategies are available:
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Filing both federal and state taxes by the original April 15 deadline.
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Requesting a federal extension and filing both returns once state lawmakers reach a decision.
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Filing federal taxes now while delaying the state return.
Refunds and Payments
Taxpayers who are expecting a refund do not need to take immediate action but must ensure their state return is filed by October 15. For those who owe a balance, the SCDOR recommends using the MyDORWAY portal as the most efficient method for making Individual Income Tax payments.
If the pending bill results in tax decreases after a resident has already filed, taxpayers may eventually need to file an amended return or wait for a potential credit to be applied to the following tax year. The SCDOR plans to provide updated instructions through its official website and social media platforms as the legislative process concludes.
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