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The following South Carolina forms are prepared:
SC 1040ES | South Carolina Estimated Tax |
SC 1040 | South Carolina Income Tax Return |
SC Sch NR | Nonresident Schedule |
SC 1040X | South Carolina Amended Income Tax Return |
SC 1040TC | Tax Credits |
SC TC Wkst | Credit for Taxes Paid Worksheet |
SC 1040TC INS | Tax Credit Worksheet Instructions |
SC Wkst W | Two Wage Earner Credit When Both Spouses Work |
SC TC-44 | Excess Insurance Premium Credit |
SC 1310 | Statement of Person Claiming Refund Due Deceased Taxpayer |
SC 2210 | Underpayment of Estimated Tax |
SC Ann Inc | Annualized Income Worksheet |
SC 2848 | Power of Attorney and Declaration of Representative |
SC 4868 | Request for Extension of Time |
SC 4972 | Lump-Sum Distributions |
SC 8453 | Declaration for Electronic Filing |
SC 8582 | Passive Activity Loss Limitations |
SC 8822 | Change of Address/Business Location |
SC 1040-V | Electronic Payment Voucher |
SC I-319 | Tuition Tax Credit |
SC I-330 | Contributions for Check-Offs |
SC I-335 | Active Trade or Business Income Reduced Rate Computation |
SC I-335A | Pass-through Income from a Sole Proprietorship |
SC I-335B | Pass-through Income from a Partnership or S Corporation |
SC I-360 | Classroom Teacher Expenses Credit |
A copy of the federal return is provided with the South Carolina return when federal Schedule C, D, E or F is present or if a credit is claimed for tax paid to another state. The following supporting statements are also provided to support the South Carolina return:
- Late Payment Penalty and Interest
- Out of State Income or Loss
- Other Additions or Subtractions
- Other Income or Adjustments
- Itemized Deduction Worksheet
- Credit for Taxes Paid Other States
- Net South Carolina Capital Gain Deduction
Federal Forms for South Carolina Returns
Form 6198, Form 6252, Form 8582, Form 8829 and Schedules C, E and F are prepared and attached when there are differences between the federal and South Carolina computations.
FS and State Code
The FS and State
FS | State | Action |
---|---|---|
blank | blank | Federal and home state |
F | blank | Federal only |
S | blank | Home state only |
blank | XX | Federal and indicated state** |
F | XX | Federal and indicated state |
S | XX | Indicated state only |
** On multi-state returns, this entry will be included in income on the federal return, the full-year resident state return and the indicated state. This entry scheme applies to items of income only. It does not apply to state withholding, other tax payments, footnotes, credits or additional taxes since these items relate only to the indicated state.
The first column is the FS code. The word "blank" in this column indicates no entry was made in the FS code
The second column is the state code. The word "blank" indicates no entry was made. "XX" represents the alphabetic state code.
The third column specifies the returns that will include the entries in the related
Filing Status Optimization
Two separate tax return files can be produced from one original set of
Processing options related to the Filing Status Optimization are available on
The Filing Status Comparison, which can be requested on
TSJ Codes
TSJ coding is required for income entries to determine if both the taxpayer and spouse have earned income making them eligible for the two wage earner credit.
TSJ codes are not needed for itemized deductions.
Depreciation
Beginning with tax year 1985, South Carolina adopted the federal depreciation rules and thus requires no modification to federal taxable income. State depreciation is calculated from federal depreciation entries on
For assets purchased in 1983 and 1984, South Carolina does not allow the Section 179 and ITC basis adjustment. After the asset is fully depreciated for federal purposes, the remaining depreciable basis is amortized on the South Carolina return at (1) 50 percent per year for personal property, and (2) 20 percent per year for real property.
Make the following entries on
Asset Number = | Matching asset number |
Method = | SL |
Life/Rate = | 2 for personal property 5 for real property |
Cost = | Sum of the Section 179 Expense and ITC basis adjustment. |
Sec 179/Bonus = | "0" |
ITC Adj/Sal = | "0" |
Accumulated = | Total of prior depreciation. |
Depreciation = | A zero must be entered if this is the first year. |
South Carolina Deviations Requiring Entries
The following differences between the South Carolina income tax return and the federal income tax return are not taken into account and require specific accountant entries.
Tax Exempt Interest
Enter tax exempt interest, such as municipal bond interest, received from South Carolina or its political subdivisions in the State Nontaxable
Enter tax exempt interest that is taxable to South Carolina in the State Taxable
If tax exempt interest reported on 1099-DIV includes both amounts from South Carolina and amounts from other states, enter the amount from South Carolina in the State Nontaxable
Enter tax exempt interest received from a passthrough entity in the Interest and Dividends section of
Installment Sales
For installment sales after June 6, 1984, and before January 1, 1985, "F" and "S" coded entries are required to calculate the installment sale per the applicable law.
If an installment sale is fully taxable by South Carolina in the current year, make these entries:
- Enter blank or "S" in the FS code
field onthe Installment Sales worksheet ; - Enter "SC" on
the Installment Sales worksheet, State section, State Use field .
Future receipts from South Carolina income are excluded for these sales.
To treat installment sales as installment sales on the South Carolina return, make these entries:
- Enter blank or "S" in the FS code
field onthe Installment Sales worksheet ; - Do not enter "SC" on
the Installment Sales worksheet, State section, State Use field .
South Carolina Retirement Exclusion
The South Carolina retirement exclusion is calculated from entries on
If the taxpayer is receiving a particular pension as a surviving spouse, enter a code "17" in the State Use Code
If the retiree elected to take the $3,000 deduction in prior years, or is electing to take the $3,000 deduction this year, enter a "1" in the State Amount
Dependents Under 6 Years of Age
A deduction is allowed to resident taxpayers for each dependent who may be claimed on the taxpayer's federal income tax return and who has not attained the age of six during the applicable tax year.
For 2020the deduction is equal to the federal income tax personal exemption amount allowed for the taxable year.
Total Income - Credit for Taxes Paid
Other additions and subtractions entered on
Depreciation
Qualifying assets placed in service after September 10, 2001 automatically calculate the federal bonus depreciation as well as the corresponding adjustment for the state disallowed portion of the bonus depreciation. Specific assets may be excluded from the bonus calculation entirely by making an entry on
South Carolina does not conform to the federal bonus depreciation. Depreciation adjustments due to this are made by the difference being reported as an entity (Schedule C, Passive Activity adjustment, etc.) adjustment on the SC1040, line 1e. An override is available on
Driver's License/ID Information
The South Carolina Department of Revenue requests taxpayers provide their driver license or ID number information on the South Carolina individual income tax return. The Department may use the information in its security measures to detect and prevent refund fraud. Omission of this information may delay return and refund processing. However, providing the information is optional; therefore, if the information is not provided on the return, processing of the South Carolina income tax return will still be completed.
Refund Expectations
SC DOR is not prepared at this time to state whether there will be a delay in refund processing. SC DOR will provide refund expectation guidance at a later date. Where's My Refund.
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