Press Release from the South Carolina Department of Revenue:
Since the pandemic began, more than 700,000 South Carolina workers have filed initial unemployment claims and almost $4 billion has been paid in unemployment and pandemic-related benefits, according to the SC Department of Employment and Workforce.
The South Carolina Department of Revenue (SCDOR) reminds individuals receiving unemployment that these benefits are taxable.
South Carolina and federal taxes apply to unemployment benefits – including unemployment benefits from programs related to the pandemic. If you are receiving unemployment benefits, you may pay taxes related to these benefits in the following ways:
- Withholding: Have state income taxes withheld from your unemployment benefits. Withholding is voluntary. If you want taxes withheld from your unemployment benefits, visit the South Carolina Department of Employment and Workforce's website.
- Make estimated tax payments: You can choose to make quarterly South Carolina estimated tax payments.
- The quickest and easiest option is to pay online using MyDORWAY, our free and secure tax portal, at dor.sc.gov/pay. Select Individual Income Tax Payment to get started.
- Or, you can mail a payment using the SC1040ES. If you pay online with MyDORWAY, do not mail the SC1040ES.
- Wait until you file your 2020 Income Tax return: You may choose to wait to calculate and pay your taxes next year when you file your 2020 Income Tax return. This option gives you less time to prepare for your tax payment and may expose you to an underpayment penalty.
Whatever method you choose, don't be surprised by next year's tax bill! Plan today.
For more information, review Information Letter 20-15 for more information on state Income Tax and withholding on unemployment benefits. For questions about federal unemployment benefits and tax obligations, visit IRS.gov.
