“I actually learned about it by accident,” said John Dubois, Seabrook resident and former Town Council member, as he described a little-known tax credit for excess insurance premiums which is listed as form SC SCH.TC-44.
Basically, by calculating your premiums paid for one tax year on all hazards for your primary household – including fire, flood, Wind and Hail, etc. – along with your federal adjusted gross income, you can claim up to $1,250 in credits per year. Dubois, for example, was able to go back and claim credits for both 2008 and 2009, and as the credit program was enacted in 2007, tax payers should be able to claim for 2007, as well.
“With the insurance increases a few years ago, every little bit helps,” said Dubois, noting that he knew of a couple former island residents who had to move off of Seabrook Island because of the hike in insurance premiums. Even his insurance company, with whom he had been a customer since 1953, dropped his Wind and Hail coverage, as well as his Homeowner’s insurance, due to the cost.
To file for the tax credit, one simply needs to fill out both forms SC SCH. TC-44, as well as an Amended Individual Income Tax form (SC 1040X) for the year of their claim. For a copy of form SC SCH TC-44, visit www.sctax.org and click on “tax credits” in the blue tool bar on the left side of the screen.
Please note that this article is for information purposes only. Please consult with a qualified professional if you have questions about the above information and/or before applying for credits.Tweet