Questions & Answers

What are examples of other subtractions from income?

  • Palmetto ABLE Savings Account: You can subtract 100% of any contributions made to a Palmetto ABLE savings account, subject to program limitations, during 2020.
  • Net Operating Loss: 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.
  • Legislator Travel: Legislators within a 50-mile radius of the State House are allowed to subtract travel expenses.
  • Adoption of Special Needs Child: If you 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 is a child who is under the age of 18 at the time of adoption, 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.
  • Accounting Method Change: 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.
  • Installment Method: The installment method of reporting is to be adjusted if the entire sale has been reported for state purposes, or if the entire sale has been reported for federal purposes and you wish to continue on an installment basis for state purposes. This may be an addition or a subtraction.
  • Difference in Basis: Adjust a federal gain or loss to reflect any difference in the South Carolina basis and federal basis. This may be an addition or subtraction.
  • Reserves or National Guard Retirement: 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. For more information see How do I calculate my excludable Reserves or National Guard retirement income?
  • Preceptor Credit Additional Rotations: If you are eligible for the Preceptor Credit on the Form TC-62 and you served additional rotations that exceeded the credit limit for the tax year, you may be eligible for a deduction equal to the amount that the credit would have been for the additional rotations. Refer to the TC-62, available on the South Carolina Department of Revenue's forms webpage  for information on calculating the deduction.

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