Article: 50423
Overview
The Excess Insurance Premium Credit (SC TC-44) is a nonrefundable credit available to South Carolina residents who incur high insurance premiums on their legal residence, specifically for property or casualty insurance coverage (e.g., homeowners’ insurance).
This credit is designed to help homeowners in higher-risk areas (such as coastal regions) offset the financial burden of unusually high premiums.
Eligibility Requirements
You may qualify for this credit if:
- You are a South Carolina resident,
- You paid property or casualty insurance premiums on your legal primary residence,
- The premiums exceed 5% of your South Carolina Adjusted Gross Income (SC AGI),
- You are not claiming the same premiums as a deduction or other credit.
Note: Only premiums paid out-of-pocket for your legal residence qualify. Secondary homes or rental properties are excluded.
How the Credit Works
- The credit equals the portion of your total insurance premiums that exceeds 5% of your SC AGI.
- It is nonrefundable, meaning it can reduce your tax liability to zero but cannot generate a refund.
- Any unused portion cannot be carried forward to future tax years.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: “I’d like to see the forms I’ve filled out or search for a form.”
- In the dropdown menu, select South Carolina.
- Click on the Credits tab.
- Click on “Excess Insurance Premium Credit” to open the form.
- Enter all applicable information.
- Click ‘Save‘ once complete.
Additional Resources
For further information see: https://dor.sc.gov/forms-site/Forms/TC44.pdf