02/26/2026
**BREAKING NEWS**
South Carolina tax refund delayed in 2026
South Carolina tax refunds are expected to take longer this year, according to the state's Department of Revenue (DOR) website.
Key reasons for 2026 South Carolina refund delays:
Trump tax law changes. Because the state legislature adjourned just before the federal tax bill was finalized, South Carolina remains "decoupled" from the new federal rules. This means that major new tax breaks — like the "senior bonus" deduction and overtime tax deduction — are not currently recognized at the state level.
Federal taxable income. South Carolina returns begin with federal taxable income. To ensure taxpayers aren't accidentally claiming Trump tax law breaks on their state returns, the state's DOR is requiring filers to manually add back those deductions as income on their 2025 returns.
Requiring amended returns. Third-party tax software programs initially struggled to calculate these "add-backs" correctly, leading to a surge in "Notice of Discrepancy" letters from the state's DOR and processing delays.
