South Carolina General Information (2024)

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CCHAxcess Tax

The following South Carolina forms are prepared:

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

Filing Status Optimization

TSJ Codes

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 the Depreciation and Amortization worksheets.

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 the Depreciation and Amortization worksheet if the asset is fully depreciated for federal purposes and there is Section 179 or ITC basis reduction for the asset:

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 fields on the Interest worksheet. Amounts entered in these State Nontaxable fields are excluded from the South Carolina return.

Enter tax exempt interest that is taxable to South Carolina in the State Taxable fields on the Interest worksheet.

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 field and the remaining amount in the State Taxable field.

Enter tax exempt interest received from a passthrough entity in the Interest and Dividends section of the Passthrough worksheets. For tax exempt interest received from South Carolina or its political subdivisions use code "9" or "16." Amounts entered in conjunction with codes "9" and "16" are excluded from the South Carolina return. For tax exempt interest taxable to South Carolina use code "10" or "17."

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 on the 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 on the 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 the IRAs, Pensions and Annuities worksheet (unless an "F" is entered in the FS code field).

If the taxpayer is receiving a particular pension as a surviving spouse, enter a code "17" in the State Use Code field. Then the taxpayer is entitled to an additional retirement exclusion.

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 field of the IRAs, Pensions and Annuities worksheet to force the $3,000 deduction.

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 the SC General worksheet adjust federal gross income for the calculation of credit for taxes paid to another state. A code field is provided on the SC General worksheet to exclude any addition or subtraction entered on the SC General worksheet from the adjustment to federal gross income.

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 the Depreciation and Amortization worksheet.

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 the SC General worksheet, Additions section, State Bonus Depreciation Adjustment - Override field.

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.