It appears you may need to update your age and/or residency information in TurboTax to help ensure you're receiving the maximum deductions related to your age category. If you're 65 or older by the end of the 2024 tax year in South Carolina, you may be eligible to claim a total tax deduction of up to $15,000 on your taxable income. This includes $10,000 in retirement income, plus an additional $5,000 for those over 65 by the end of the year.
To update your age information in TurboTax, follow these instructions:
- Open your TurboTax return and go to the About Me - Personal Profile section where you enter your personal information.
- Verify your date of birth is correctly entered. This is crucial for TurboTax to apply the correct deductions.
Step 1: Check Retirement Income
- Go to the Federal - Tax Home section.
- Select Income.
- Scroll down to Retirement Plans and Social Security.
- Select IRA, 401(k), Pension Plan Withdrawals.
- Review your 1099-R or retirement income entries to ensure all of your retirement income is entered correctly. Double-check any distributions from pensions, IRAs, or 401(k) s.
Step 2: Check Spousal Income (if applicable)
- If both you and your spouse receive retirement income, you’re each eligible for the $5,000 deduction.
- Make sure your spouse’s retirement income is also correctly entered in the appropriate section.
Step 3: Verify Residency Requirement
- Navigate to the About Me - Personal Info section.
- Select the Pencil Edit button next to your name.
- Scroll down to Information section "open and recheck all information for you and your spouse".
- Ensure the correct state (South Carolina) is selected as your primary state of residence.
- Continue through the program to ensure that the deduction is applied properly.
For additional information about the South Carolina Retirement Income Deduction, you can visit this link: South Carolina Department of Revenue - Retirement Income Deduction
