How do I know if I am considered permanently disabled by SC tax law? I was considered disabled by federal tax law but at 65 it changed to retired.

[JamesG1 · Accepted solution]

South Carolina Department of Revenue states:  (click to the right of Income.)

Is disability income taxable to South Carolina?

Pension income received while a resident of South Carolina is taxable to South Carolina. However, we do allow a total and permanent disability retirement income deduction. If disability retirement income is taxed on your federal return and you are totally and permanently disabled, you may be able to deduct this income from your South Carolina taxable income.

To qualify, you must be totally and permanently disabled, unable to be substantially gainfully employed, receiving income from a disability retirement plan, and eligible for the homestead exemption under SC Code Section 12-37-250. You must attach a copy of the physician's statement establishing that you are permanently and totally disabled.

For more information, see SC Code Sections 12-6-1140(4), 12-37-250.