Does anyone need $2500.00?

Folks, I think I’ve got some GOOD insurance-related news!

While the debate over Health Care Reform continues to rage, I’d like to share with you some good news about one of those many other insurances we all get to pay — namely, our Homeowner’s Insurance.

The State of South Carolina has a little-known credit called the “Excess Insurance Premium Credit.”  In a nutshell, it says that if the total property and casualty insurance (hazard, fire, flood, wind/hail, etc.) you pay on your Primary Residence is greater than 5% of your AGI (Adjusted Gross Income), you can take a credit for up to $1250.00 of the excess on your SC State Return.  And remember folks, credits are MUCH better than deductions, because they result in a dollar-for-dollar tax savings.

This is a retroactive credit, so both the 2007 and 2008 returns can be amended, and if you aren’t able to use the entire credit you qualify for, you can carry the unused portion forward for up to 5 years.

The bad news is that most South Carolina residents won’t qualify for the credit.  But most of the ones who do qualify live along the coast which, coincidentally, is where Charleston Tax Masters is located!  I have no illusions that the SC State General Assembly passed this credit just so I could look good in front of my clients, but I thank them for it just the same!

So, if you think that the property taxes you pay on your home are excessive in relation to your income, we should probably have a chat.  Just shoot me an email and we’ll figure out a game plan, and who knows — maybe we can find a way to put a few “found” dollars in your pocket! 

Until next time…….

Steven