CHARLOTTE, NC (WBTV) - After the first of the year, we told you about a way you can get a tax credit if you live in South Carolina and buy gas for your car there.
Now, we have details on exactly what you should do to get the money, according to the tax experts at H&R Block.
Full and part-year residents can claim a refundable credit starting next year, but this is not a deduction. The credit will directly offset any income tax owed to the state.
The credit comes based on the smaller amount between these two things; the number of gallons of gas you've purchased in the year multiplied by the credit rate or preventive maintenance costs in South Carolina. Those are things you have to buy for your car like oil changes and new tires.
You must save your receipts for both fuel and preventive maintenance. They will not have to be turned in with a tax return but should be kept for your records.
When you file your taxes next year you'll have to fill out the I-385 form.
Here's an example H&R Block gave WBTV to help it make sense:
If you buy 500 gallons of gas this year and you spend $200 on preventive maintenance, your refundable credit is 15 dollars. That's the smaller of 1) 500 gallons x $.03 (the 2018 credit rate), or 2) $200.
Remember that gas tax increase continues to creep up every year until it reaches 12 cents. The good news is the refundable credit increases too.