Wednesday, April 24, 2019

SC Gas Tax Credit Made Easy

The SC Gas Tax was essentially a waste of effort for 2018, and for 2019 it will be mostly the same. But the credit gets better every year, and you should think of 2019 as your practice year for 2020, and start getting into the habit of tracking your required expenses in a simple, easy to keep up with manner. Your reward will be a few dollars in 2019, and hopefully a few more in 2020, more in 2021, and even more in 2022.

Here's what you need (do this for each car):
1. The Year, Make, Model, Plate #, and Registered Owner Name
2. The number of gallons of gas bought IN SOUTH CAROLINA
3. The cost of routine or preventative maintenance

The stuff in 1 is easy, and number 3 doesn't have to be a big number, because you get the credit (around 4 cents a gallon in 2019) or the maintenance cost whichever is LOWER. So you only need an oil change or two to cover the gas tax credit amount.

Here's how to make 2 and 3 easy:

What you are looking at is an envelope that will go in the glove compartment of the car in question with a gas receipt and an oil change receipt. On the outside of the envelope, there are 2 columns, one for gallons of gas, and one for cost of maintenance. Just write the numbers on the envelope right after you fill-up or have maintenance done, and then slip the receipts into the envelope. At the end of the year, add the numbers on the envelope up and put the envelope with your tax documents for when you file.

Make sure to grab the envelope and put it somewhere safe if you sell the car!

When you file, just put the information into the I385 form in the appropriate spots (or where the software asks for it).

Bonus hint: We keep our gas rewards card from Lowe's Foods in the envelope so we never forget it!

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