SOUTH CAROLINA
separate property state

 

Military Income:   Fully taxable. 

Military Spouse Residency Relief Act:  Service member and spouse are not domiciles of South Carolina. Service member present in state as a result of military orders. Spouse in state solely to be with service member. Spouse must be a resident of same state as service member.

Forms Used:            

Filing Status:  Same as federal.   If one spouse is not a resident of South Carolina, they should file a joint nonresident return. 

Attach Copy of Federal Return:  Yes, if there are schedules.

Not Taxed: 

Other State Tax Credit:  Available.  Attach South Carolina Form Schedule TC and copy of other state return. 

Miscellaneous:  South Carolina allows resident a credit on long term capital gains.  See instructions. 

Where to Mail:
Processing Center
PO Box 101100
Columbia, SC  29211-0100
 
Refund Inquiry:  (803) 898-5300 General Information 1-800-763-1295
Forms1-800-768-3676  Website:  www.sctax.org
Electronic Filing:  (803) 898-5405  
Other Info:  
SC Dept of Revenue
PO Box 125
Columbia, SC  29214
 
E-filing Info:  Retain SC 8453 form for 3 years.
Tax Form Instructions:

General Instructions

Resident Instructions Non-Resident Instructions

 

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both South Carolina residents, lived at their present location all year, and one or both had income.

Main Info Screen.

South Carolina 1040 Form.  A joint resident South Carolina income tax return is prepared.  You must enter the County Code as in the example.  For residents living out of state enter 99.  For residents living out of the country enter 88. Complete the appropriate boxes related to Combat Zone involvement as required.

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of South Carolina, while the other member is a resident of a different state.  A South Carolina income tax return must be prepared due to the taxpayer or spouse having South Carolina earned income.

Main Info Screen.  If the spouse is a domicile (resident) of another state, the parties should file as nonresidents.  For this example, the taxpayer is a resident of South Carolina while the spouse is a resident of North Dakota.  

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

South Carolina 1040 Form.   A joint non-resident South Carolina income tax return should be prepared.  You must enter the County Code as in the example.  For residents living out of state enter 99.  For residents living out of the country enter 88. Complete the appropriate boxes related to Combat Zone involvement as required.

South Carolina Schedule NR will be generated.  This form is used to subtract out the other-states (North Dakota) income.  

Review the remainder of the South Carolina Form 1040 and Schedule NR to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a South Carolina tax return due to one or both having South Carolina earned income.

Main Info Screen.  If both members are residents of another state, the parties should file as nonresidents.  For this example, the taxpayer and spouse are both residents of Wisconsin but must file a South Carolina income tax return because the spouse worked in South Carolina.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

South Carolina Form 1040.   A joint non-resident South Carolina income tax return should be prepared.  You must enter the County Code as in the example.  For residents living out of state enter 99.  For residents living out of the country enter 88. Complete the appropriate boxes related to Combat Zone involvement as required.

South Carolina Schedule NR will be generated.  This form is used to subtract out the other-states (Wisconsin) income.  To comply with the provisions of the Service Member's Civil Relief Act and the Military Spouses Residency Relief Act, the non-resident income of the service member is taken off tje Federal Columns of the South Carolina Schedule NR Form.  You must remove the nontaxable income from line 1, Federal Column.  The only way to properly do this for South Carolina is to link on line 1, and add a Scratch Pad. 

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the Active Duty military income as a negative value.

South Carolina Schedule NR. We also remove the Nonresident Military Spouse Income using Sch NR, this time from the SC Income Column To comply with the provisions of the Military Spouse Residency Relief Act, the wages of the nonresident spouse is taken off the SC Income Column of Schedule NR Form. The only way to properly do this for South Carolina is to link on line 1, and add a Scratch Pad as in the example.

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the wage income of the Nonresident Military Spouse as a negative value.

Review the remainder of the South Carolina Form 1040 and Schedule NR to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from South Carolina during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of South Carolina.  The Spouse and taxpayer must file a South Carolina tax return due to one or both of them having South Carolina earned income and possibly income from another state.

Main Info Screen.  For this example, the taxpayer is in the military and a resident of Indiana.  The taxpayer and spouse moved from South Carolina to North Dakota during the year.  The spouse was a resident of South Carolina but is now changing their residency to North Dakota for tax purposes.  The spouse therefore was a part-year resident of both South Carolina and North Dakota and must file a South Carolina income tax return because the spouse worked in South Carolina.

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

South Carolina Form 1040.   A joint part-year resident South Carolina income tax return should be prepared.  This form will be generated for a South Carolina part- year resident who must report South Carolina earned income.  You must enter the County Code as in the example.  For residents living out of state enter 99.  For residents living out of the country enter 88. Complete the appropriate boxes related to Combat Zone involvement as required.

South Carolina Schedule NR will be generated.  This form is used to subtract out all the other-state's income.  Fill in the residency dates, as in the example.  To comply with the provisions of the Service Member's Civil Relief Act, the military member's non-resident income must be taken off of the South Carolina Schedule NR Form.  You must subtract Active Duty military pay from line 1, Federal Column.  The only way to properly do this for South Carolina is to link on line 1, and add a Scratch Pad. 

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the Active Duty military income as a negative value.

Review the remainder of the South Carolina Form 1040 and Schedule NR to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of South Carolina with Income from Another State  - Taxpayer is single.  The taxpayer must file a South Carolina tax return due to him or her having South Carolina earned income.

Main Info Screen.  For this example the taxpayer is a military member stationed in North Dakota but a resident of South Carolina.  The taxpayer had a job in North Dakota therefore having North Dakota earned income.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

South Carolina 1040 Form.  A resident South Carolina income tax return is prepared.  South Carolina taxes residents on income from all sources, even income earned while living in another state (North Dakota as in this example).   You must enter the County Code as in the example.  For residents living out of state enter 99.  For residents living out of the country enter 88. Complete the appropriate boxes related to Combat Zone involvement as required.

South Carolina Schedule TC  must be added to the tax return.  To figure a credit for Taxes Paid to another State (North Dakota) press F9/Link on line 1 to access at South Carolina Schedule TC worksheet.

SC TC Wkt 2 must be added to the tax return.  You must complete the other states tax return first, then enter the amount of tax from the other states tax return.  This is not the amount the taxpayer had withheld from his or her pay but the amount of tax imposed on them.  Line 2 is the amount of income earned in the other state (North Dakota).  Line 6 is the amount of income tax liability on the (North Dakota) tax return.  A copy of the other state's return must be attached to the South Carolina return if not e-filed.

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended South Carolina return must be filed because the taxpayer received new tax information after their South Carolina return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

South Carolina 1040X - Amended Individual Tax Return  Add the South Carolina 1040X Form to the return.  Answer the questions as in the example.  You must check the box to lock in the entries in Column A - As reported or adjusted, before making any changes to the return.

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

South Carolina 1040X - Amended Individual Tax Return  Return to the South Carolina 1040X form to determine if the taxpayer is receiving an additional refund or owes money.

South Carolina 1040X - Amended Income Tax Return or Application for Refund, Page 2.  On Page 2 you must enter an explanation for why the Amended Return is being prepared.  Enter the current date in the Date field. 

Complete all other fields with red or required information.

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.