South Carolina to reduce income tax withholdings

COLUMBIA, S.C. (AP) — South Carolina plans to reduce the amount of money withheld for state income taxes, beginning in 2017.

The State newspaper reported (http://bit.ly/1OeTeih) the move will leave more money in the paychecks of workers. But the move will reduce the amount of state income tax refunds.

Revenue Department Director Rick Reames says the move will eventually put $1 billion back in people’s paychecks each year. The move will mostly benefit lower income taxpayers, married taxpayers and taxpayers with children.

Reames says the state has been withholding too much money from people’s paychecks. He says South Carolina has not adjusted its withholding guidelines for 25 years.

The first year would give a married couple with two children and a taxable income of more than $10,000 would get an extra $73 a year.

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Information from: The State, http://www.thestate.com