A new legislative proposal in South Carolina aims to provide married couples with a more flexible option for calculating their state income tax. South Carolina House Bill 3436, introduced on February 6, 2025, seeks to amend the state tax code to allow married taxpayers who file a joint federal return to calculate their South Carolina income tax as if they were filing as single taxpayers. This change is designed to benefit couples whose cumulative tax liability would be lower under the single-filer status.

The bill's key provision allows married couples to elect this option if it results in a lower total tax owed compared to filing jointly. If both spouses choose to file as single taxpayers for state tax purposes, any excess amount owed can be deducted from their joint return. This could potentially lead to significant savings for some families, particularly those with varying income levels.

Supporters of the bill argue that it addresses the financial realities many couples face, especially in a state where tax burdens can vary widely based on income distribution. By allowing this flexibility, the bill aims to create a fairer tax system that reflects the diverse economic situations of married couples.

However, the proposal has sparked debates among lawmakers. Some express concerns about the potential complexity it could introduce into the tax filing process, while others worry about the implications for state revenue. Critics argue that the bill might disproportionately benefit higher-income couples, raising questions about equity in the tax system.

If passed, House Bill 3436 would take effect for tax years beginning after 2024, potentially impacting many families in South Carolina. As discussions continue, the bill's future remains uncertain, but its introduction highlights ongoing efforts to reform the state's tax code to better serve its residents. The outcome of this legislation could have lasting implications for the financial well-being of married couples across the state.