1350
                                                STATE OF SOUTH CAROLINA                       SC SCH.TC-46
                                                DEPARTMENT OF REVENUE                            (Rev. 6/11/20)
                                                                                                        3442
                                            CREDIT FOR S CORPORATION 
  dor.sc.gov                                    BANK SHAREHOLDERS                             20
Name                                                                                          SSN

  1.  Current year Individual Income Tax liability (from SC1040, line 6).............................................    1.  $  
                                                                                                                                  
  2.  Current year tax on active trade or business income (from SC1040, line 8) ...............................    2.  $  
                                                                                                                                  
  3.  Total current year tax liability (add line 1 and line 2) ................................................................    3.  $  
                                                                                                                                  
  4.  All other allowable credits you have claimed this tax year ........................................................    4.  $  
                                                                                                                                  
  5.  Current year tax liability after other credits claimed (subtract line 4 from line 3) .........................    5.  $  
                                                                                                                                  
  6.  Net income items or income and expenses of the bank ...........................................................    6.  $  
                                                                                                                                  
  7.  Percentage of ownership of the S Corporation (round to fourth decimal place) ..........................    7.                                         % 
                                                                                                                                  
  8.  Prorata net income (loss) from the bank (multiply line 6 by line 7) ............................................    8. $ 
                                                                                                                                  
  Before completing line 9 through line 13, you must complete a separate hypothetical South Carolina return excluding the   
  prorata net income (loss) from line 8. Keep the hypothetical return with your tax records.                                      
                                                                                                                                  
  9.  Recalculated tax due on active trade or business income (see instructions) .…...........................     9.  $  
                                                                                                                                  
10.  Recalculated Individual Income Tax due (see instructions) ..........................................................  10.  $  
                                                                                                                                  
11.  Recalculated tax liability (add line 9 and line 10) ..…………………………………………...………   11.  $  
                                                                                                                                  
12.  Recalculated total of all other allowable credits claimed for the tax year ..................................... 12.  $  
                                                                                                                                  
13.  Recalculated current year tax liability after other credits claimed (subtract line 12 from line 11)  13.  $  
                                                                                                                                  
14.  Tentative credit (subtract line 13 from line 5)  ..........................................................................  14.  $  
                                                                                                                                  
15.  South Carolina Bank Tax owed and paid by the S Corporation ................................................  15.  $  
                                                                                                                                  
16.  Prorata share of Bank Tax paid by the S Corporation (multiply line 15 by line 7) .......................  16.  $  
                                                                                                                                  
17.  Allowable credit (enter the lesser of line 14 or line 16)  ..........................................................   17. $ 
       Enter on the SC1040TC. 

     34421016

                                              INSTRUCTIONS 
                                                     
For calendar years beginning January 1, 2007, a taxpayer who is a shareholder in a bank that has a valid federal 
Subchapter S election is allowed a tax credit equal to the difference between: 
 1.  their Individual Income Tax after all other credits, and  
 2.  their Individual Income Tax after all other credits, but excluding their prorata share of the net items of income and 
       expenses of the bank 
 
The credit cannot exceed the taxpayer's prorata share of the S Corporation's Bank Tax.  
 
Individual Income Tax includes: 
 •     tax imposed on the individual, and 
 •     tax on active trade or business income 
 
Before completing line 9 through line 13, you must complete a hypothetical return excluding the prorata net income (loss) 
from line 8. Keep the hypothetical return with your tax records. 
 
Line 9: Complete a hypothetical I-335 if you have elected to complete an actual I-335 with your return. On the 
hypothetical I-335, recalculate the tax due on active trade or business income if prorata net income (loss) from the bank 
to you as an S Corporation shareholder is excluded. 
 
Line 10: Recalculate your Individual Income Tax due after excluding the prorata net income (loss) from the bank to you 
as an S Corporation shareholder, as well as the recalculated deduction for active trade or business income if it applies.  
 
If you file by paper, attach to your Income Tax return. If you file electronically, keep a copy with your tax records. 

Social Security Privacy Act Disclosure 
It is mandatory that you provide your Social Security Number on this tax form if you are an individual taxpayer. 42 U.S.C. 405(c)(2)(C)(i) 
permits a state to use an individual's Social Security Number as means of identification in administration of any tax. SC Regulation 
117-201 mandates that any person required to make a return to the SCDOR must provide identifying numbers, as prescribed, for 
securing proper identification. Your Social Security Number is used for identification purposes. 
The Family Privacy Protection Act 
Under the Family Privacy Protection Act, the collection of personal information from citizens by the SCDOR is limited to the information 
necessary for the SCDOR to fulfill its statutory duties. In most instances, once this information is collected by the SCDOR, it is protected 
by law from public disclosure. In those situations where public disclosure is not prohibited, the Family Privacy Protection Act prevents 
such information from being used by third parties for commercial solicitation purposes.