Military retirement income deduction; definitions; surviving spouse

# (A)

An individual taxpayer may deduct all military retirement income that is included in South Carolina taxable income.

# (B)

The term "retirement income", as used in this section, means the total of all otherwise taxable income not subject to a penalty for premature distribution received by the taxpayer or the taxpayer's surviving spouse in a taxable year from a qualified military retirement plan. For purposes of a surviving spouse, "retirement income" also includes a retirement benefit plan and dependent indemnity compensation related to the deceased spouse's military service.

# (C)

A surviving spouse receiving military retirement income that is attributable to the deceased spouse shall apply this deduction in the same manner that the deduction applied to the deceased spouse. If the surviving spouse also has another retirement income, an additional retirement exclusion is allowed.

# (D)

The department may require the taxpayer to provide information necessary for proper administration of this subsection.

Last amended: 2016 Act No. 272 (H.3147), SECTION 1.B, eff June 7, 2016; 2022 Act No. 156 (H.3247), SECTION 2, eff May 13, 2022; 2022 Act No. 228 (S.1087), SECTION 3.A, eff June 17, 2022. Code Commissioner's Note At the direction of the Code Commissioner, the amendments to (A) made by 2022 Act No. 156 and 2022 Act No. 228 were read together. Editor's Note 2016 Act No. 272, SECTION 1.C, provides as follows: "C. Notwithstanding the deduction allowed pursuant to Section 12-6-1171(A)(1), beginning in tax year 2016

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