South Carolina State Tax Help

What is the South Carolina Financial Literacy Trust Fund?

Financial literacy education helps all students in South Carolina schools to learn about personal finance and investments. With contributions from public or private sources, the Financial Literacy Trust Fund provides all support for financial literacy education.

South Carolina Financial Literacy Trust
1429 Senate Street, Suite 902A
Columbia, SC 29201-3730
803-734-8537

What are some examples of other additions to income?

  • If you claim bonus depreciation under federal law you must add back the difference between the bonus depreciation taken and the depreciation which would have been allowed without bonus depreciation.
  • If you claim a child care program credit for donations to a nonprofit corporation (Schedule TC-9), you are not allowed a deduction for those donations. The disallowed deductions are an addition to federal taxable income.
  • If you claim credits such as the Community Development Credit (Schedule TC-14), the Industry Partnership Fund Credit (Schedule TC-36), or the Credit for Child Care Program (Schedule TC-9), you may not claim a deduction for the same qualified contribution which results in credits.
  • If your federal net operating loss is larger than your state net operating loss you must add back your federal net operating loss.
  • If you deduct expenses on your federal return related to any income exempt or not taxed by South Carolina those expenses are additions. Some examples are investment interest to out-of-state partnerships and interest paid to purchase United States obligations.
  • If you have foreign areas allowances, cost of living allowances, or income from possessions of the United States they must be added back to your federal taxable income.
  • Effective for qualifying investments made after June 30, 1998, you must reduce the basis of the qualifying property to the extent the Capital Investment Tax Credit is claimed. An addition to federal taxable income must be made for the resulting reduction in depreciation.
  • If you claim a deduction for domestic production activities under IRC Section 199 it must be added back.
  • If you can claim a charitable contribution deduction under IRC Section 170 for a gift of land it must be added back unless the contribution also meets the requirements of S.C. Code Section 12-6-5590.
  • As of January 1, 2009, a business must add back any amount paid for services performed by an unauthorized alien if the amount is $600 or more a year. An "unauthorized alien" is a person who is not admitted for permanent residence and not authorized to be employed either under federal law or by the U.S. Attorney General. An add-back is not required if one or more of the following applies:
    1. The business is a S.C. business exempt from compliance with federal employment verification procedures under federal law.
    2. The person being paid is not directly paid or employed by the business.
    3. The employment status of the person is verified using the procedures contained in the new law.
    4. The person was hired by the taxpayer before January 1, 2009.
    5. The business made a reasonable investigation of the person and didn't know or shouldn't have known that the person was an unauthorized alien.
  • If you make a change in the accounting method of your business to conform in the same manner and the same amount used on your federal return you may have an addition or a subtraction. At the end of the federal adjustment, any balance will continue until fully adjusted.
  • The installment method of reporting is to be adjusted if the entire sale has been reported for state purposes or to continue on an installment basis if the entire sale has been reported for federal purposes. This may be an addition or a subtraction.
  • You should adjust the federal gain or loss to reflect any difference in the South Carolina basis and federal basis. This may be an addition or a subtraction.

What are the allowable limits for a Catastrophe Savings Account?

Include any withdrawals from a Catastrophe Savings Account that were necessary because contributions were more than the allowable limits. If your legal residence is insured against hurricane, rising floodwaters, or other catastrophic windstorm event damage, those limits are as follows:
  • $2,000 if the qualified deductible is less than or equal to $1,000
  • Twice the qualified deductible if it is greater than $1,000 but less than or equal to $7,500
  • $15,000 if the qualified deductible is greater than $7,500
If your legal residence is not insured against hurricane, rising floodwaters, or other catastrophic windstorm event damage, the limit is $250,000 or the value of your legal residence, whichever is less.

Include the amount by which withdrawals during the tax year are more than qualified catastrophe expenses, which are expenses paid or incurred by reason of a major disaster as declared by the Governor. Do not include withdrawals you made after reaching 70 years of age unless your contributions were more than the allowable limits.

What are examples of other subtractions from income?

  • South Carolina does not recognize bonus depreciation in IRC Section 168(k). With or without bonus depreciation, the depreciable life of the property is the same for federal and state purposes. For the tax year in which the property is placed in service, a taxpayer must add back the difference, in the line for other additions, between the depreciation deduction allowed for federal purposes and the deduction that would have been allowed without bonus depreciation. Therefore, the South Carolina adjusted basis is greater than the federal adjusted basis. For all other years of the depreciable life of the property, an additional depreciation deduction is available for South Carolina purposes.
  • South Carolina net operating loss that is larger than the federal amount is a subtraction. In no event is the same loss to be deducted more than once. Attach your own worksheet or keep with your tax records. No carryback losses are allowed.
  • Capital expenses amortized under federal statutes will be the same for state purposes. At the end of the federal amortization, the balance of capital expense amortized will continue until fully amortized for state purposes. The amortized amount is a subtraction from your income.
  • Legislators within a 50-mile radius of the State House are allowed to subtract travel expenses.
  • If you have adopted a "special needs child," you may subtract $2,000 per year per child as long as the adopted child qualifies as a dependent on your federal return. Attach a copy of the letter you received at the time of adoption which certified the person as a "special needs child." A "special needs child" means a person under the age of 18 at the time of adoption, who is a dependent of a public or private nonprofit adoption agency, is legally free for adoption and has been determined by the agency to have specific conditions.
  • A change in accounting method to conform in the same manner and same amount as federal. At the end of the federal adjustment, any balance will continue until fully adjusted. This may be an addition or subtraction.
  • The installment method of reporting is to be adjusted if the entire sale has been reported for state purposes or to continue on an installment basis if the entire sale has been reported for federal purposes. This may be an addition or a subtraction.
  • Adjust the federal gain or loss to reflect any difference in the South Carolina basis and federal basis. This may be an addition or subtraction.
  • Retirement income paid by the United States government for service in the Reserves or National Guard is not taxed for South Carolina purposes. You can subtract the entire amount of any stipend paid by the State of South Carolina for National Guard Service.
Determine the percentage of your military retirement income which is excludable by dividing the length of time you served in the Reserves and/or National Guard (not full time) by the length of time of your total military service as follows:
Inactive Reserve time + Inactive National Guard time = Exclusion Percent
Total Military time (Active and Inactive)

Determine the excludable amount of your military retirement income by multiplying it by the percentage of exclusion as follows:
Exclusion Percent X Total taxable military retirement income shown on federal return = Excludable military retirement income

What are the miscellaneous tax credits?

Drip/Trickle Irrigation Systems Credit (TC-1)

For purchasing and installing conservation tillage equipment, drip/trickle irrigation system, or dual purpose combination truck and crane equipment.

Minority Business Credit (TC-2)

For state contractors that subcontract with socially and economically disadvantaged small businesses.

Water Resources Credit (TC-3)

For investing in the construction of water storage and control structures for soil and water conservation, wildlife management, agriculture, and aquaculture purpose.

Nursing Home Credit

A credit is allowed for an individual who pays expenses for his/her own support or the support of another to an institution, in any state, providing nursing facility level of care or to a provider for in-home or community care. A physician must certify that the nursing care is needed. No credit is allowed for expenses paid from public source funds (such as Medicaid or Veterans Administration). The credit is calculated by multiplying the expenses by 20% (0.20), but the credit can't exceed $300. No carryover is allowed if your credit is greater than your tax due. There is no separate form for this credit.

Small Business Job Credit (TC-4SB)

For qualifying small businesses that create and maintain 2 or more full-time jobs.

Accelerated Small Business Jobs Credit (TC-4SA)

For qualifying small businesses that create 2 or more full-time jobs.

Scenic Rivers Credit (TC-5)

For donating certain lands adjacent to designated rivers or sections of a river.

Palmetto Seed Capital Credit (TC-7)

For investing in the Palmetto Seed Capital Corporation.

Child Care Program Credit (TC-9)

For employers that establish child care programs for the benefit of employees or donate to a non-profit corporation providing child care services to employees.

Capital Investment Credit (TC-11)

For placing qualifying manufacturing and production equipment in service.

Family Independence Payments Credit (TC-12)

For employers hiring recipients of Family Independence Payments.

Community Development Credit (TC-14)

For investing amounts not claimed as charitable deductions in qualifying community development corporations or financial institutions.

Research Expenses Credit (TC-18)

For taxpayers claiming a federal research expenses credit.

Brownfields Cleanup Credit (TC-20)

For costs of voluntary cleanup activity by a nonresponsible party under the Brownfields Voluntary Cleanup Program.

Certified Historic Structure Credit (TC-21)

For rehabilitation projects that qualify for the federal credit.

Certified Historic Residential Structure Credit (TC-22)

For qualifying residential rehabilitation projects.

Textiles Rehabilitation Credit (TC-23)

For rehabilitation of an abandoned textile manufacturing facility.

Commercials Credit (TC-24)

For production companies producing commercials in South Carolina.

Motion Pictures Credits After June 30, 2004 (TC-25)

For investing in motion picture projects or motion picture production or post-production facilities in South Carolina after June 30, 2004.

Venture Capital Investment Credit (TC-26)

For lending money to the South Carolina Venture Capital Authority.

Health Insurance Pool Credit (TC-27)

For an individual who acquires replacement health insurance coverage through the South Carolina Health Insurance Pool.

South Carolina Quality Forum Credit (TC-28)

For participating in quality programs of the South Carolina Quality Forum.

Qualified Retirement Plan Contribution Credit (TC-29)

For taxes paid to another state on qualified retirement plan contributions not exempt from the other state's income tax.

Port Cargo Credit (TC-30)

For increasing usage by volume at state ports.

Retail Facilities Rehabilitation Credit (TC-31)

For revitalizing abandoned retail facilities.

Premarital Preparation Course Credit (TC-32)

For attending a qualifying marriage preparation course prior to obtaining a South Carolina marriage license.

Alternative Motor Vehicle Credit (TC-35)

For purchasing qualifying vehicles.

Industry Partnership Fund Credit (TC-36)

For contributing to the South Carolina Research Authority's Industry Partnership Fund.

Solar Energy or Small Hydropower System Credit (TC-38)

For installing a solar energy system or small hydropower system in a South Carolina facility.

Ethanol or Biodiesel Production Credit (TC-40)

For producers of corn-based or non-corn-based ethanol or soy-based or non-soy-based biodiesel.

Renewable Fuel Facility Credit (TC-41)

For constructing a renewable fuel production or distribution facility in South Carolina.

Residential Retrofit Credit (TC-43)

For retrofitting a residence to make it more resistant to loss due to hurricane, rising floodwater, or other catastrophic windstorm event.

Apprenticeship Credit (TC-45)

For employing an apprentice.

Credit Shareholder of S Corporation Banks (TC-46)

For shareholders of S corporations operating as banks.

Plug-In Hybrid Vehicle Credit (TC-48)

For in-state purchase or lease of a plug-in hybrid vehicle. Use TC-48A to apply for this credit.

Venison for Charity (TC-51)

$50 for each carcass of deer meat prepared by a licensed meat packer, butcher, or processing plant for charity.

Fire Sprinkler System Credit (TC-52)

25% of costs for voluntarily installing a sprinkler system in a structure.

Energy Efficient Manufactured Home Credit (TC-53)

$750 credit for new purchase of an Energy Star manufactured home.

Credit for Manufacturing Renewable Energy Systems (TC-54)

For investing in production of renewable energy systems and components.

Abandoned Buildings Revitalization Credit (TC-55)

For rehabilitating an abandoned building.

Angel Investor Credit (TC-56)

For investing in certain types of businesses.

What is the Catastrophe Savings Account subtraction?

You may subtract the amount you contributed to a Catastrophe Savings Account and interest income earned by the account. If your legal residence is insured against hurricane, rising floodwaters, or other catastrophic windstorm event damage, your contributions are limited to the following amounts:
  1. $2,000 if the qualified deductible is $1,000 or less
  2. Twice the qualified deductible if it is between $1,000 and $7,500
  3. $15,000 if the qualified deductible is more than $7,500. If your legal residence is not insured against hurricane, rising floodwaters, or other catastrophic wind event damage, the limit is $250,000 or the value of your legal residence, whichever is less.

What is the maximum Tuition Tax Credit I can receive?

The credit for each taxable year is equal to 25% of the tuition paid, not to exceed $850 for a student attending a 4-year institution, or $350 for a student attending a 2-year institution. The credit may be claimed for no more than 4 consecutive years after the student enrolls in an eligible institution.

What are the qualifying four-year colleges and universities?

Qualifying four-year colleges:
  • Allen University*
  • Anderson University*
  • Benedict College*
  • Bob Jones University*
  • Charleston Southern University*
  • The Citadel
  • Claflin University*
  • Clemson University
  • Coastal Carolina University
  • Coker College*
  • College of Charleston
  • Columbia College*
  • Columbia International University*
  • Converse College*
  • Erskine College*
  • Francis Marion University
  • Furman University*
  • Lander University
  • Limestone College*
  • Medical University of SC
  • Morris College*
  • Newberry College*
  • North Greenville University*
  • Presbyterian College*
  • South Carolina State University
  • Southern Wesleyan University*
  • University of South Carolina
  • USC Aiken
  • USC Beaufort
  • USC Upstate
  • Voorhees College*
  • Winthrop University
  • Wofford College*
*Private Colleges or Universities

What are the qualifying two-year colleges and universities?

Qualifying two-year colleges:
  • Aiken Technical College
  • Central Carolina Technical College
  • Denmark Technical College
  • Florence-Darlington Technical College
  • Greenville Technical College
  • Horry-Georgetown Technical College
  • Midlands Technical College
  • Northeastern Technical College
  • Orangeburg-Calhoun Technical College
  • Piedmont Technical College
  • Spartanburg Methodist College
  • Spartanburg Community College
  • Technical College of the Lowcountry
  • Tri-County Technical College
  • Trident Technical College
  • USC Lancaster
  • USC Salkehatchie
  • USC Sumter
  • USC Union
  • Williamsburg Technical College
  • York Technical College

What are estimated tax payments and extension payments?

Estimated tax payments include:
  • Any estimated tax payments you made for 2014 with Form SC1040ES
  • Any refund from your 2013 return that you applied to your 2014 taxes
An extension payment is any amount paid with your South Carolina extension request.

Do NOT enter any amount of your 2014 South Carolina income tax withheld by your employer(s) as shown on any wage or tax statements.

What is the Endangered Wildlife Fund?

Thanks to your generous support, the number of bald eagles in South Carolina has increased from 13 to over 250 nesting pairs. With the success here and in other states, the bald eagle has been removed from the Federal endangered species list. The bald eagle represents just one conservation success. There are many other species in South Carolina that are threatened or endangered. The Endangered Wildlife Fund continues to serve as a primary source of funding for the conservation of these species. Make your investment in the future - Help SCDNR keep wildlife in YOUR life.

South Carolina Department of Natural Resources
Wildlife Section
P. O. Box 167
Columbia, SC 29202
www.dnr.sc.gov

What is the Children's Trust Fund?

The Children's Trust of South Carolina strengthens and supports public and private prevention efforts that keep South Carolina's children safe. Your contributions supports work that prevents child abuse, neglect, and unintentional injuries. The organization promotes healthy, nurturing relationships between parents and children by ensuring parents across the state have access to the services they need to make a difference in their lives, as well as the lives of their children. Your contribution will help ensure that all children in South Carolina have the opportunity to thrive in a healthy, nurturing environment.

Children's Trust of South Carolina
1634 Main Street
Suite 100
Columbia, SC 29201
803-733-5430
www.scchildren.org

What is the Eldercare Trust Fund?

Your donation will help South Carolinians live with vitality and dignity in their homes and communities, avoiding institutional care for as long as possible. The trust distributes grants to non-profit organizations for innovative programs, services, and pilot projects serving older adults across the state.

ElderCare Trust Fund
c/o Lieutenant Governor's Office on Aging
1301 Gervais Street, Suite 350
Columbia, SC 29201-3203
1-800-868-9095
803-734-9900
www.aging.sc.gov

What is the SC Veterans' Trust Fund?

As veteran's benefits continue to erode, this trust fund ensures that your voice is heard via supporting veterans' programs designed to benefit veterans and their families. This fund complements many state and federal initiatives. It is managed by veterans for veterans.

Veterans' Trust Fund
Office of Veterans' Affairs
1205 Pendleton Street, Suite 463
Columbia, SC 29201-3751
803-734-0200

What is Donate Life South Carolina?

Donate Life South Carolina is a nonprofit organization whose mission is to promote organ and tissue donation and provide patient assistance to transplant recipients in South Carolina. Donate Life South Carolina established and maintains the South Carolina Organ and Tissue Donor Registry. Your contributions support efforts that save lives of fellow South Carolinians.

Donate Life South Carolina
4200 East North Street
22 Centre East
Greenville, SC 29615-2437
Toll-free 877-277-4866
www.donatelifesc.org

What is the South Carolina First Steps to School Readiness Fund?

South Carolina is home to nearly 340,000 children under age 6. More than one in four of these children faces significant barriers to early school success. As the state's school readiness agency, First Steps is making a difference in connecting these high-risk children and their families to services that improve their chances for success, such as parenting programs, health services, quality child care, and early education. Research shows that these investments produce significant long-term savings to the public due to higher graduation rates and reduced costs of remedial education, welfare, and crime. Your tax-deductible contribution will help First Steps and its network of county partnerships invest in early childhood initiatives for children 0-5.

South Carolina First Steps
1300 Sumter Street, Suite 100
Columbia, SC 29201-3340
1-877-621-0865
803-734-0479
www.scfirststeps.org

What is the War Between States Heritage Trust Fund?

Contributions are used to preserve representative lands and related structures which illustrate periods, events, styles, and uses of the land in our state's historical and cultural heritage for present and future generations.

War Between the States Heritage Trust Fund
1205 Pendleton Street, Suite 517
Columbia, SC 29201-3757
803-734-1759

What is the South Carolina Litter Control Enforcement Program?

From trash on the highways to illegal dumping in parks and public lands, litter is a significant and costly problem in South Carolina. The cost of cleaning it up is a drain on the state's resources. Litter also has a negative impact on tourism and our ability to attract new businesses and industries and the jobs they create. By contributing to the fight against litter, you can help support the enforcement of litter laws and help us catch those that trash our beautiful state.

PalmettoPride
PO Box 50217
Columbia, SC 29250-0217
1-877-725-7733

What is the South Carolina Law Enforcement Assistance Program?

The South Carolina Law Enforcement Assistance Program (SCLEAP) is a partnership program of state law enforcement agencies (SLED, SCDPS, SCDNR, and SCDPPPS) which provides assistance to municipal, county, and state law enforcement officers, and their departments, along with non-sworn employees, and their families. It provides peer support, crisis intervention, employee assistance, and volunteer chaplain services statewide. The staff and volunteers are on call 24 hours a day.

SCLEAP
2501 Heyward Street
Columbia, SC 29205
803-252-2664
803-252-2752
www.scleap.org

What is the K-12 Public Education Fund?

Your donations to the K-12 Public Education Fund will help fund public education from kindergarten through 12th grade.

South Carolina Department of Education
1429 Senate Street
Columbia, SC 29201
803-734-8485
www.ed.sc.gov

What is the State Parks Fund?

Contributions to the State Parks Fund will help support, establish, and improve projects that preserve and interpret the natural and cultural environment of South Carolina State Parks. Projects include: Loggerhead sea turtle nesting programs, habitat enhancements, trail creation and maintenance, education centers, interpretive programs, and historic preservation projects.

South Carolina State Park Service
1205 Pendleton Street, Suite 517
Columbia, SC 29201-3757
803-734-1759
www.southcarolinaparks.com

What is the South Carolina Military Family Relief Fund?

This fund awards grants to families of members of the South Carolina National Guard or Reserves who are called to active duty as a result of the September 11, 2001, terrorist attacks. Grants are distributed based on need, status, and service-connected injury or illness.

Military Family Relief Fund
Office of Veterans' Affairs
1205 Pendleton Street, Suite 463
Columbia, SC 29201-3751
803- 734-0200

What is the South Carolina Conservation Bank Trust Fund?

The fund seeks to improve the quality of life in South Carolina by protecting, enhancing, and preserving natural resource areas, wildlife habitats, water quality, forest lands, farmlands, places of beauty, historical and archaeological sites, public access for outdoor recreation, and traditional uses of land such as hunting, fishing, and other types of outdoor recreation.

South Carolina Conservation Bank Trust Fund
PO Box 167
Columbia, SC 29202-0167
803-734-3986
sccbank.sc.gov

What contributions to the South Carolina Tuition Prepayment Program or South Carolina College Investment Program may be deducted?

You may deduct 100% of any contribution made to the South Carolina College Investment Program ("Future Scholar") made between January 1, 2014 and April 15, 2015. You may also deduct 100% of any contributions made to the South Carolina Tuition Prepayment Program made between January 1, 2014 and December 31, 2014.

What is qualified National Guard Income?

The income you receive from the National Guard or Reserve for customary annual training, weekend drills, and other inactive duty training can usually be subtracted from your South Carolina income. Do NOT include Military Reserve and National Guard pay which is included in retirement income.
  • Members of the National Guard or Reserves can subtract all inactive duty pay from the United States or any state for weekend drills and other inactive duty training actually attended.
  • Members of the National Guard and active duty Reserve members can also subtract up to 15 days of customary annual training pay, also referred to as "active duty training" or "ADT".
  • Inactive duty Reserve members can also subtract up to 14 days of customary annual training pay, also referred to as "active duty training" or "ADT", plus up to 2 day of travel time listed on official orders.
  • Full-time Active Guard and Reserve (AGR) employees can subtract up to 15 days of annual training actually attended and up to 24 days of weekend drills (a maximum of 39 days) at the daily rate of pay.

What disability retirement income can be subtracted from South Carolina income?

If disability retirement income was taxed on your federal income tax return, and you qualify as being permanently and totally disabled, you may be able to deduct this income from your South Carolina taxable income.

You must be totally and permanently disabled, unable to be gainfully employed in any capacity, and you must be receiving income from a disability retirement plan and be eligible for the homestead exemption under Section 12-37-250 to qualify. You do not qualify if you are receiving disability income from one job while you are able to perform another job. You must have a physician's statement establishing that you are permanently and totally disabled.

The deduction is limited to payments received from retirement plans. Payments from disability plans which are not retirement plans are not eligible for the deduction. Third party sick pay reported on a W-2 (W2) does not qualify for the disability retirement deduction.

A surviving spouse may take a disability retirement deduction for amounts received in the year the disabled spouse died. For subsequent years, a surviving spouse is not eligible for the disability deduction.

Who qualifies for a subsistence allowance?

Police and all commissioned law enforcement officers, including full-time firefighters or full-time emergency medical service personnel, paid by South Carolina municipal, county, or state governments, or the federal government are entitled to subsistence allowances of $8 per regular workday. Your employer should provide you with the number of work days you are allowed to claim.

Who qualifies for the Volunteer Deduction?

Volunteer firefighters, rescue squad workers, volunteer hazardous materials (HAZMAT) team members, reserve police officers, Department of Natural Resources (DNR) deputy enforcement officers, and members of the State Guard, and State Constables are allowed to subtract $3,000 from their South Carolina taxable income.

Volunteer firefighters, rescue squad workers, and HAZMAT team members qualify only if their employer gives them a form stating that they have earned the minimum number of points established by the State Fire Marshal during the year.

Reserve police officers, DNR deputy enforcement officers, and State Guard members qualify only if the appropriate authority gives them an I-332 certification form certifying their eligibility for this deduction.

Volunteer state constables qualify if they complete a minimum logged service time of two hundred forty hours per year and have been designated by the State Law Enforcement Division (SLED) as a state constable before the taxable year for which the deduction is first claimed. The volunteer state constable must be current with the required SLED approved annual training for constables for the most recently completed fiscal year as evidenced by a copy of the documentation provided to SLED of this annual training.

The maximum deduction allowed is $3,000 per person. If both you and your spouse qualify, you can claim a $6,000 deduction.

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