{"id":1442,"date":"2018-09-26T17:36:26","date_gmt":"2018-09-26T17:36:26","guid":{"rendered":"https:\/\/www.homeinsuranceking.com\/blog\/?p=1442"},"modified":"2018-09-26T17:36:40","modified_gmt":"2018-09-26T17:36:40","slug":"after-florence-south-carolina-homeowners-get-sc-tax-breaks","status":"publish","type":"post","link":"https:\/\/www.gethomeinsurancequotes.com\/blog\/after-florence-south-carolina-homeowners-get-sc-tax-breaks\/","title":{"rendered":"After Florence, South Carolina Homeowners Get SC Tax Breaks"},"content":{"rendered":"
\"Hurricane

A CSA account can be used by people that own a single-family home that is their legal residence in South Carolina.<\/p><\/div>\n

Hurricane Florence did a massive amount of damage to the Carolina\u2019s and homeowners are just starting to dig through the aftermath. While insurance should help homeowners rebuild, a couple of state tax rules could help homeowners save a bit of money and get back on their feet quicker.<\/p>\n

Here are a couple of tips offered in a recent Post and Courier article:<\/p>\n

Establish a Catastrophe Savings Account<\/strong><\/p>\n

These accounts are a great tax-advantaged way to save money and cover your homeowner insurance deductibles<\/a> when you have to file a claim after a disaster that has been declared an emergency by the governor. While the catastrophe savings account<\/a> (CSA) laws were set up more than a decade ago, there are not that well known and it is the responsibility of the homeowner to find a bank that offers these types of accounts.<\/p>\n

A CSA account can be used by people that own a single-family home that is their legal residence in South Carolina. If you deposit money into a CSA account, which is interest-bearing account, you can deduct the deposited amount from your South Carolina income, reducing your tax burden.<\/p>\n

It should be noted that if you withdraw your money from a CSA account for any expenses other than \u201cqualified catastrophe expenses\u201d you would have to pay taxes on it and there is a 2.5 percent penalty that will also apply.<\/p>\n

On the other hand, if you established the account to pay insurance deductibles, and never needed to use it, once you hit 70 years old you can withdraw the money for any reason and there is no tax or penalties. This means that you can open a CSA account (which bears interest), claim the state tax deduction and withdraw the money for any reason once you turn 70.<\/p>\n

In the meantime, if your home does suffer damage from a storm, you can withdraw money from the CSA to help cover your deductibles.<\/p>\n

No matter your age, as long as the money is withdrawn from a CSA to cover qualifying expenses, there is no tax owed on the original contribution or any of the interest that has been earned. Basically, a CSA is like an IRA for disaster related insurance deductibles or expenses.<\/p>\n

There are a few rules associated with CSAs:<\/p>\n