1350    STATE OF SOUTH CAROLINA 
              DEPARTMENT OF REVENUE                                                                                              SC SCH.TC 12
              CREDIT FOR EMPLOYERS HIRING RECIPIENTS                                                                             (Rev. 7/24/19)
              OF FAMILY INDEPENDENCE PAYMENTS                                                                                       3327
   dor.sc.gov                                                                                                                    20
Name                                                                                                                            SSN or FEIN
 
This  credit  is  for  employers  who  hire  individuals  who  have  received  Family  Independence  payments  for  three  months 
immediately preceding the month of hire. See instructions for additional requirements.

              COMPUTATION OF TAX CREDIT

A. First 12 Months of Employment Occurring in the First Tax Year of Hire
   1.    Number of employees qualifying for the credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . .               1. 
   2.    Total qualifying wages paid to employees included in line 1 . . . . . . . . . . . . . . . . . .                      2. 
   3.    Credit: Multiply line 2 by 20% (.20). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      3. 
                                                                                                                               
B.  First 12 Months of Employment Occurring in the Second Tax Year of Hire                                                     
   1.    Number of employees from line A1 remaining employed. . . . . . . . . . . . . . . . . . . . .                         1. 
   2.    Total qualifying wages paid to employees included in line B1 . . . . . . . . . . . . . . . . .                       2. 
   3.    Multiply line 2 by 20% (.20). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3. 
    Second   12 Months of Employment Occurring in the Second Tax Year of Hire                                                  
   4.    Total qualifying wages paid to employees included in line B1 . . . . . . . . . . . . . . . . .                       4. 
   5.    Multiply line 4 by 15% (.15). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5. 
   6.    Credit: Add lines 3 and 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
 
C. Second 12 Months of Employment Occurring in the Third Tax year of Hire
   1.    Number of employees from line A1 remaining employed. . . . . . . . . . . . . . . . . . . . .                         1. 
   2.    Total qualifying wages paid to employees included in line C1 . . . . . . . . . . . . . . . . .                       2. 
   3.    Multiply line 2 by 15% (.15). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3. 
    Third  12 Months of Employment Occurring in the Third Tax Year of Hire                                                     
   4.    Total qualifying wages paid to employees included in line C1 . . . . . . . . . . . . . . . . .                       4. 
   5.    Multiply line 4 by 10% (.10)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5. 
   6.    Credit: Add lines 3 and 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 
                                                                                                                               
D.  Third 12 Months of Employment Occurring in the Fourth Tax Year of Hire                                                     
   1.    Number of employees from line A1 remaining employed . . . . . . . . . . . . . . . . . . . . .                        1. 
   2.    Total qualifying wages paid to employees included in line D1. . . . . . . . . . . . . . . . . .                      2. 
   3.    Credit: Multiply line 2 by 10% (.10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     3. 
                                                                                                                               
E.  Summary                                                                                                                    
   1.    Enter amount from line A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1. 
   2.    Enter amount from line B6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   2. 
   3.    Enter amount from line C6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   3. 
   4.    Enter amount from line D3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   4. 
   5.    Total credit - Add lines 1 through 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     5.
         Enter here and on the SC1040TC or SC1120TC

    33271024

                                          INSTRUCTIONS

This credit combined with the jobs tax credit (TC-4), small business job tax credit (TC-4SB), or small business alternative 
job tax credit (TC-4SA) cannot total more than $5,500 per employee.

The credit exists only for the first three consecutive years of employment of qualified employees. 

This credit is limited to:  
 1.  20% of wages for each full month of the first 12 months of employment 
 2.  15% of wages for each full month of the second 12 months of employment 
 3.  10% of wages for each full month of the third 12 months of employment. 
 
Qualifying wages include only those wages paid to employees who received Family Independence, Aid to Families with 
Dependent  Children  (AFDC)  payments  for  three  months  immediately  preceding  the  month  of  employment.  Submit  an 
employee release, and request certification of Family Independence eligibility by writing to the South Carolina Department 
of Social Services by the 15th day of the first month after the end of the taxable year in which the employee is hired. 
 
To claim this credit, the employer must make health insurance available to the qualified employee on the same basis and 
under the same conditions available to all employees, including employer contributions and employer imposed waiting 
periods. The employer is not required to make health insurance payments on behalf of the qualified employee unless the 
employer makes health insurance payments on behalf of nonqualified employees. If an employer imposed waiting period 
exists, the credit begins from the date the qualified employee is hired. An employer imposing a waiting period of more 
than 12 months may not claim this credit. 

The employer may not claim this credit if the position filled by the former AFDC recipient was made available due to the 
termination or forced resignation of an employee for the purpose of obtaining the tax credit.  
 
This credit may be carried forward 15 years from the taxable year the credit is earned.  

Example - A qualifying employee is hired June 10, 2017, earning $1,500 per month. For a calendar year employer, the 
first year tax credit is 6 (number of full months of employment) x $1,500 x 20% = $1,800. If this same employee remains 
employed during all of 2018 at the same wage, the credit is computed as follows: 
 
 1.  6 x  $1,500 x 20% =          $1,800 
 2.  6 x  $1,500 x 15% =          $1,350 
 3.  Total credit for 2018        $3,150
 
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. 

 33272022