Department of Revenue reminds taxpayers to collect vehicle receipts

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As 2019 comes to a close, the S.C. Department of Revenue is reminding taxpayers to collect their receipts for gasoline and vehicle maintenance accrued throughout the year.

The receipts will be used when taxpayers file their 2019 income tax returns. The 2020 tax season is the second year state residents can claim the Motor Fuel Income Tax Credit on their tax returns, the department said in a news release.

The credit offsets the state gasoline tax passed in 2017, which increased fuel taxes by two cents on July 1 every year as part of the S.C. Infrastructure and Economic Development Reform Act. Money raised by the gas tax is set aside to pay for road improvements statewide.

The S.C. Department of Transportation reports the Motor Vehicle User Fee has raised $275.4 million as of Oct. 31. The revenue is deposited into the Infrastructure Maintenance Trust Fund.

State residents can get a tax credit for the money they spent on gasoline and vehicle preventive maintenance costs throughout the year. The credit is available for expenses on vehicles registered in the state, and the gasoline or maintenance work must be purchased or provided in the state.

More than 134,000 taxpayers claimed the credit for the 2019 tax season. The average credit was $24.37. The available credit cap increases to $65 million in the 2020 tax season.

Taxpayers do not have to submit their receipts, but they should be saved if an audit is necessary. Gas receipts should show the number of gallons of gas purchased. Maintenance receipts should show the car model, type of work performed and amount.