South Carolina Schedule NR Instructions 2023 Nonresident Schedule Instructions South Carolina Department of Revenue | dor.sc.gov | December 2023 1
| South Carolina Schedule NR Instructions 2023 Nonresident Schedule Instructions South Carolina Department of Revenue | dor.sc.gov | December 2023 1 |
|
Contents
Before You Begin � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �3
Line Instructions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �3
Income and Exclusions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �3
Adjustments to Income � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �5
Adjusted Gross Income � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �8
South Carolina Additions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �8
South Carolina Subtractions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �8
Proration and Deduction � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �14
Reminders � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �16
2
|
|
Before You Begin
● Use the Schedule NR if you are a nonresident of South Carolina or you are filing as a part-year
resident�
● Check the Schedule NR box on the front of your SC1040�
● Attach the Schedule NR and a copy of your federal return to your SC1040.
● Do not submit your Schedule NR separately�
● We cannot process your return if you submit your Schedule NR separately or file it without a
Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
● South Carolina conforms to the Internal Revenue Code as amended through December 31,
2022, except as otherwise provided. If Internal Revenue Code sections adopted by South
Carolina which expired on December 31, 2022 are extended, but not otherwise amended, by
congressional enactment during 2023, these sections are also extended for South Carolina
Income Tax purposes in the same manner that they are extended for federal Income Tax
purposes�
● This instructional guide’s references to form numbers and line descriptions on federal Income
Tax forms were correct at the time of printing. If they have changed and you are unable to
determine the proper line to use, contact the SCDOR Individual Income Tax section at 1-844-
898-8542. Use these instructions as a guide when preparing your Schedule NR. They are not
intended to cover all provisions of the law.
● You’re required to provide your SSN on this tax form. If you are a nonresident or resident alien
and cannot get an SSN, contact the IRS to apply for an ITIN for the purpose of filing Income Tax
returns. South Carolina will accept this number in place of an SSN to process your Individual
Income Tax returns. For more information, contact the IRS at 1-800-829-1040 or irs.gov�
Line Instructions
Income and Exclusions
Enter on line 1 through line 15 your income and losses�
● Place losses in [brackets]�
● Enter in Column A your total income reported on your federal return�
● Enter in Column B the total income taxed by South Carolina�
● Round all amounts to the nearest dollar�
3
|
|
Line 1: Wages, salaries, tips, and other compensation
Enter in Column B:
● All wages, salaries, tips, or other compensation reported to you as South Carolina income on
your W-2s, and
● All wages you earned while a resident of South Carolina.
Nonresident service members:
Do not include in Column A:
● Military compensation paid to you if you are a resident of another state.
Do not include in Column B:
● Military compensation paid to you if you are a resident of another state.
● Income for services performed in South Carolina by the spouse of a service member under the
provisions of the Federal Military Spouses Residency Relief Act if:
■ the spouse is not a resident of the state where the service member and spouse are living,
■ the spouse is in South Carolina solely to be with the service member,
■ the service member is in South Carolina on military orders, and
■ the spouse and service member are residents of the same state�
Do not make an adjustment if South Carolina is your state of legal residency�
Line 2 and Line 3: Taxable interest and dividends
Interest, dividend income, and interest from another state’s obligations are taxable by South Carolina
for the time you were a resident of South Carolina. Include in Column B the interest connected with a
trade or business in South Carolina, regardless of your state of residency� Do not include in Column B
interest income from US or South Carolina obligations.
Line 4: Taxable refunds, credits, or offsets of state and local Income Taxes
South Carolina does not tax a refund of state and local Income Taxes� Enter the amount from the federal
1040 in Column A� Do not enter an amount in Column B�
Line 5: Alimony received
Enter in Column B alimony received for the time you were a resident of South Carolina, if the alimony
results from a divorce decree executed or modified before December 31, 2018.
Alimony received as a result of a divorce decree executed or modified after December 31, 2018 is not
taxable�
Line 6: Business income or loss
Enter in Column B the income or loss resulting from businesses located in South Carolina. Indicate
business losses in [brackets]� 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�
Line 7 and Line 8: Capital gain or loss and other gains or losses
Include in Column B gains or losses from:
● the sale of real property (land or buildings) located in South Carolina
● stocks or bonds sold while a resident of South Carolina
4
|
|
Any gain or loss reported in Column B must be supported by the appropriate federal schedules showing
the location of the business or property.
Line 9 and Line 10: Taxable IRA distributions, pensions, and annuities
Enter in Column B the taxable amounts you received while a resident of South Carolina.
Line 11: Rental real estate, royalties, partnerships, estates, and trusts
Enter in Column B the income or loss from property located in South Carolina or from doing business in
South Carolina�
Line 12: Farm income or loss
Enter in Column B the income or loss resulting from a farm located in South Carolina. As of January
1, 2009, a South Carolina business must add back any amount paid for services performed by an
unauthorized alien if the amount is $600 or more a year�
Line 13: Unemployment compensation
Enter in Column B the unemployment compensation paid from South Carolina or received while a
resident of South Carolina�
Line 14: Taxable Social Security benefits
South Carolina does not tax Social Security or railroad retirement. Do not enter any of these amounts in
Column B�
Line 15: Other income
Enter in Column B any other income earned while a resident of South Carolina or from sources within
South Carolina for which there is no line provided on the return.
Other income includes:
● prizes
● awards
● gambling winnings
● director fees
Report a foreign earned income exclusion or net operating loss resulting while you were a South
Carolina resident or from sources within South Carolina in [brackets].
Line 16: Total income
Add line 1 through line 15 of each column� Enter the total of each column�
Adjustments to Income
Report in this section federal adjustments to gross income.
● Enter amounts from your federal return in Column A�
● Enter the portion that applies to South Carolina in Column B.
The South Carolina adjustments on line 17 through line 28 cannot exceed 100% of the federal
adjustment�
5
|
|
Line 17: Educator expenses
If you qualify for an educator expenses deduction for federal purposes, you are allowed a deduction in
Column B. Calculate your allowable South Carolina deduction using the following formula:
SC total income
(line 16, Column B) X Line 17, Column A = SC adjustment in Column B
Federal total income
(line 16, Column A)
Line 18: Certain business expenses of reservists, performing artists, and fee-basis government
officials
Calculate your allowable South Carolina deduction using the following formula:
SC total income
(line 16, Column B) X Line 18, Column A = SC adjustment in Column B
Federal total income
(line 16, Column A)
Line 19: Health savings account
Calculate your allowable South Carolina deduction using the following formula:
SC compensation X Line 19, Column A = SC adjustment in Column B
Federal compensation
Compensation is income you receive for providing personal services. This includes:
● wages
● salaries
● commissions
● tips
● professional fees
● bonuses
● self-employment income
Line 20: Moving expenses
You can deduct moving expenses if you are a member of the Armed Forces on active duty and you
move because of a permanent change of station due to a military order. If you had allowable moving
expenses on your federal 1040, and if your move was into South Carolina, you are allowed a full moving
expense adjustment in Column B�
If you moved out of South Carolina, your expenses are not deductible.
6
|
|
Line 21 through line 23
If you have self-employment income earned from South Carolina and other states, calculate your
allowable South Carolina deduction using the following formula:
SC self-employment income X Federal adjustment in Column A = SC adjustment in Column B
Total self-employment income
Line 24: Penalty on early withdrawal of savings
Enter in Column B any penalty for early withdrawal of savings taxable to South Carolina.
Line 25: Alimony paid
If you paid alimony resulting from a divorce decree executed or modified before December 31, 2018,
and it qualified for an adjustment for federal tax purposes, calculate your allowable South Carolina
deduction using the following formula:
SC total income
(line 16, Column B) X Line 25, Column A = SC adjustment in Column B
Federal total income
(line 16, Column A)
Line 26: IRA deduction
Determine your IRA adjustment for Column B using the percentage of your federal compensation that
is South Carolina compensation. Calculate your allowable South Carolina deduction using the following
formula:
SC compensation X Line 26, Column A = SC adjustment in Column B
Federal compensation
Compensation is all income you receive for providing personal services. This includes:
● wages
● salaries
● commissions
● tips
● professional fees
● bonuses
● self-employment income
Line 27: Student loan interest deduction
If you qualify for a student loan interest deduction for federal purposes, you are allowed a deduction in
Column B. Calculate your allowable South Carolina deduction using the following formula:
SC total income
(line 16, Column B) X Line 27, Column A = SC adjustment in Column B
Federal total income
(line 16, Column A)
7
|
|
Line 28: Other adjustments to income
Enter in Column B any South Carolina portion of your federal adjustment to income for which there is
no line provided�
Adjusted Gross Income
Line 31: Adjusted gross income
Federal adjusted gross income: Subtract line 30, Column A from line 16, Column A� Enter on line 31,
Column A. This amount should equal the adjusted gross income from your federal return.
South Carolina adjusted gross income: Subtract line 30, Column B from line 16, Column B� Enter on
line 31, Column B�
South Carolina Additions
Line 32: South Carolina additions to income
If you report items on this line, you must attach an explanation. The following common scenarios are
examples of items which you may report on this line:
● If you claim bonus depreciation under federal law, you must add back the difference between
the bonus depreciation taken and the depreciation that would have been allowed without bonus
depreciation.
● A charitable contribution under IRC Section 170 for a gift of land must be added back unless the
contribution meets the requirements of SC Code section 12-6-5590.
● Withdrawals from Catastrophe Savings Accounts are taxable to the extent the withdrawals
exceed the qualified catastrophe expenses.
● If you made withdrawals from Catastrophe Savings Accounts that exceed the qualified
catastrophe expenses, you must add back the difference between the amount withdrawn and
the qualified catastrophe expenses.
South Carolina Subtractions
Line 33: South Carolina dependent exemption
A South Carolina dependent exemption is allowed for each eligible dependent, including both qualifying
children and qualifying relatives. Eligible dependents are dependents claimed on your federal Income
Tax return. See the worksheet below.
Worksheet for South Carolina dependent exemption
1� South Carolina dependent exemption amount 1� $4,610
2� Number of dependents claimed on your federal return 2�
3� Allowable deduction (multiply line 1 by line 2). Enter on line 33. 3�
8
|
|
Line 34: Net capital gain deduction
Net capital gains held for a period of more than one year and included in the South Carolina taxable
income are reduced by 44% for South Carolina Income Tax purposes�
Net capital gain means the excess of the net long-term capital gain for the taxable year over the net
short-term capital loss for the tax year. The South Carolina holding period for long-term capital gains
is the same as the federal holding period� Income received from installment sales and capital gain
distribution qualifies for this deduction if the more than one year holding period has been met. Multiply
the net capital gain by 44% and enter the result�
Example: Taxpayer has a long-term (LT) gain on stock (held for more than one year) of $10,000 and
long-term loss on stock of $3,000. Taxpayer also reports a short-term (ST) loss on stock held for six
months of $5,000�
SC Net LT Capital Gain $7,000 (10,000 - 3,000)
- SC Net ST Capital Loss - 5,000
SC Net Capital Gain $2,000
x Gain Deduction x 44%
Amount to be deducted $880
Line 35a through line 35c: Retirement deductions for South Carolina residents
South Carolina taxes retirement income received while you are a resident of this state. An individual
taxpayer who is the original owner of a qualified retirement account may claim this deduction.
An individual who is under age 65 may claim a retirement deduction up to $3,000 on qualified
retirement income from their own plan.
An individual who is age 65 or older during the tax year may claim a retirement deduction up to
$10,000 on qualified retirement income from their own plan.
Line 35a: Include only qualified withdrawals from the taxpayer’s own qualified retirement plan.
Line 35b: Include only qualified withdrawals from the spouse’s own qualified retirement plan.
Line 35c: A surviving spouse receiving qualified retirement income on behalf of a deceased spouse may
deduct up to $3,000 or $10,000 of the qualified retirement income, based on the age of the deceased
spouse had they lived. The surviving spouse must receive the decedent’s qualified retirement income
as a surviving spouse�
The surviving spouse retirement deduction is in addition to the individual retirement deduction claimed
from the taxpayer’s own retirement plan.
If claiming the surviving spouse retirement deduction for more than one deceased spouse, calculate
the deduction separately for each deceased spouse. Add the surviving spouse retirement deductions
and enter the total on line 35c. Attach a statement showing the date of birth for each deceased spouse
and the separate calculation for each deduction.
9
|
|
Qualified retirement income is income from plans defined in IRC 401, 403, 408, and 457 and all public
employee retirement plans of the federal, state, and local governments, including individual retirement
plans, Keogh plans, and military retirement.
Any portion of qualified retirement income received this tax year that resulted in a federal premature
withdrawal penalty does not qualify for a retirement deduction.
Reduce the taxpayer and spouse retirement deductions by any military retirement deductions taken.
Do not reduce the surviving spouse retirement deduction by any surviving spouse military retirement
deduction taken.
Worksheet for taxpayer (line 35a)
1� Maximum deduction allowed for taxpayer based on age ($3,000 or $10,000) 1�
2� Taxpayer’s military retirement deduction (line 35d) 2�
3� Taxpayer’s retirement deduction available (subtract line 2 from line 1; if less
than zero, enter zero�) 3�
4� Taxpayer’s individual qualified retirement income included in federal form
and taxable to South Carolina (taxable IRA distributions, pensions, and
annuities) 4�
5� Retirement deduction (lesser of line 3 and line 4). Enter on line 35a. 5�
Worksheet for spouse (line 35b)
1� Maximum deduction allowed for spouse based on age ($3,000 or $10,000) 1�
2� Spouse’s military retirement deduction (line 35e) 2�
3� Spouse’s retirement deduction available (subtract line 2 from line 1; if less
than zero, enter zero�) 3�
4� Spouse’s individual qualified retirement income included in federal form and
taxable to South Carolina (taxable IRA distributions, pensions, and annuities) 4�
5� Retirement deduction (lesser of line 3 and line 4). Enter on line 35b. 5�
Worksheet for surviving spouse (line 35c)
Calculate separately for each deceased spouse�
1� Maximum deduction allowed for surviving spouse based on age of deceased
spouse had they lived ($3,000 or $10,000 for each deceased spouse) 1�
2� Qualified retirement income received as surviving spouse included in
federal form and taxable to South Carolina (taxable IRA distributions,
pensions, and annuities) 2�
3� Retirement deduction (lesser of line 1 or line 2). Enter on line 35c. 3�
Line 35d through line 35f: Military retirement deduction for South Carolina residents
Beginning with tax year 2022, individuals may deduct all military retirement income included in their
South Carolina taxable income. Reduce the retirement deduction (line 35a and line 35b) and the age 65
and older deduction (line 36a and line 36b) by the amount of the military retirement deduction taken.
10
|
|
Military retirement income is taxable income received by the taxpayer or the taxpayer’s surviving
spouse from a qualified military retirement plan. Income that is subject to a penalty for premature
distribution does not qualify as retirement income. For a surviving spouse, retirement income includes
a retirement benefit plan and dependent indemnity compensation received due to the deceased
spouse’s military services.
Retirement benefits received for service in the National Guard or Reserves due to inactive time are
subtracted on line 41 and are not included in taxable income� Do not include these amounts in the
deduction on line 35.
Line 35d: Include military retirement income related to the taxpayer’s military service.
Line 35e: Include military retirement income related to the spouse’s military service.
Line 35f: Include military retirement income received on behalf of a deceased spouse. Apply the
deduction in the same manner that it applied to the deceased spouse.
The surviving spouse military retirement deduction is in addition to any retirement deductions claimed
on the taxpayer’s own retirement income.
If claiming the surviving spouse military retirement deduction for more than one deceased spouse,
calculate the deduction separately for each deceased spouse. Add the surviving spouse military
retirement deductions and enter the total on line 35f. Attach a statement showing the date of birth for
each deceased spouse and the separate calculation for each deduction.
Line 36: Age 65 and older deduction for South Carolina residents
If you are a resident of South Carolina for at least part of the year and reach the age of 65 during the
tax year, you are entitled to a deduction of $15,000 against any South Carolina income.
Line 36a applies to the taxpayer whose name appears first on the return.
Line 36b applies to the spouse whose name appears second on the return.
Reduce the age 65 and older deduction claimed on line 36a and line 36b by:
● subtracting any individual retirement deduction claimed on line 35a and line 35b, and
● subtracting any military retirement deduction claimed on line 35d and line 35e.
Claiming a surviving spouse retirement deduction on line 35c or line 35f does not reduce the age 65
and older deduction for a taxpayer on line 36a or line 36b.
Worksheet for taxpayer (line 36a)
1� Age 65 and older deduction amount 1� $15,000
2� Retirement income deduction (line 35a) 2�
3� Military retirement income deduction (line 35d) 3�
4� Deduction available (add line 2 and line 3, then subtract the total from
line 1� If less than zero, enter zero�) Enter on line 36a. 4�
11
|
|
Worksheet for spouse (line 36b)
1� Age 65 and older deduction amount 1� $15,000
2� Retirement income deduction (line 35b) 2�
3� Military retirement income deduction (line 35e) 3�
4� Deduction available (add line 2 and line 3, then subtract the total from line
1� If less than zero, enter zero�) Enter on line 36b. 4�
Assume for all examples that taxpayers are residents of South Carolina and have income to qualify
for the age 65 and older deduction in addition to the retirement deductions.
Example 1: A taxpayer age 65 or older has no military or other sourced retirement income on lines 35a
or 35d. The taxpayer is eligible for a deduction of $15,000 on line 36a.
Example 2: A taxpayer age 65 or older has no military retirement income but other sourced retirement
of $14,000. The taxpayer is allowed a deduction of $10,000 on line 35a and a deduction of $5,000 on
line 36a�
Example 3: A taxpayer age 65 or older has military retirement income of $13,000 and is allowed a
deduction on line 35d of $13,000. The taxpayer is allowed a deduction of $2,000 on line 36a. The
maximum allowed deduction for 2023 is $15,000.
Example 4: A taxpayer age 65 or older has military retirement income of $36,000 and no other earned
income. The taxpayer is eligible for a military retirement deduction of $36,000 on line 35d. The taxpayer
is not allowed an additional amount on line 36a.
Example 5: A taxpayer age 65 or older has military retirement income of $16,000 and other sourced
retirement income of $8,000. The taxpayer is allowed a deduction on line 35d of $16,000. The taxpayer
is not allowed an additional amount on line 35a or line 36a.
Line 37: Dependents under 6 years of age
If you are a resident of South Carolina for at least part of the year, you are allowed a deduction for
each dependent claimed on your federal Income Tax return who had not reached age 6 by December
31 of the tax year. Enter the birth dates and SSNs in the available blanks. If additional space is needed,
attach a separate sheet with the requested information. Use the following worksheet to compute the
deduction:
Worksheet for dependent under age 6
1� South Carolina dependent exemption amount 1� $4,610
2� Number of dependents claimed on your 2023 federal return who had
not reached age 6 during the tax year 2�
3� Allowable deduction (multiply line 1 by line 2). Enter on line 37. 3�
12
|
|
Line 38: Contributions to the SC College Investment Program (Future Scholar) or to the SC Tuition
Prepayment Program
● You may deduct 100% of any contributions to the SC College Investment Program made between
January 1, 2023 and April 15, 2024�
● You may deduct 100% of any contributions to the SC Tuition Prepayment Program made
between January 1, 2023 and December 31, 2023.
Line 39: Active trade or business income
You may be able to elect to have South Carolina active trade or business income from a pass-through
business taxed at a flat 3% rate. For more information, see the I-335, available at dor.sc.gov/forms�
Enter the amount from I-335, line 5 here.
Line 40: Consumer protection services
An individual may deduct the costs of a monthly or annual contract or subscription for identity theft
protection and resolution services. The deduction is only for individuals who filed a return with the
SCDOR for a tax year between 1998 and 2012 or whose Personal Identifiable Information (PII) was
included on another’s return. An individual who deducted the same actual costs as a business expense
may not claim the deduction.
The deduction is limited to:
● $300 for an individual taxpayer
● $1,000 for a married filing jointly return
● $1,000 for a return claiming dependents
Identity theft protection includes products and services designed to prevent an incident of identity
fraud or identity theft. It protects against the disclosure of your PII (for example, your SSN) by
preventing a third party from using unauthorized access to your PII to obtain financial resources or
other products, benefits, or services.
Identity theft resolution services include products and services designed to assist persons whose PII
was obtained by a third party. This minimizes the effects of the identity fraud or identity theft incident
and restores the person’s identity to its pre-theft status.
Line 41: Other subtractions
Enter on line 41, Column B, any other deductions for which there is no line provided. These deductions
are allowable only if the corresponding income is reported in Column B.
Some examples of items which may be subtracted on this line are:
● income for Reserve or National Guard received for weekend drills and customary training periods
● subsistence allowances for:
■ law enforcement officers
■ full-time firefighters
■ full-time emergency medical service personnel
13
|
|
● volunteer deduction for:
■ volunteer firefighters
■ volunteer rescue squad members
■ HAZMAT members
■ reserve police officers
■ DNR deputy enforcement officers
■ State Guard members
■ state constables
● deduction for the adoption of a special needs child
● deduction for amounts contributed and interest income earned by a Palmetto Able Account
Expense Fund
● deduction for additional clinical rotations served by eligible physicians, advanced practice
registered nurses, or physician assistants who are eligible for the Preceptor Credit claimed on the
TC-62. The TC-62 is available at dor.sc.gov/forms for information on calculating the deduction.
For additional information on the Preceptor Credit and deduction, see SC Revenue Ruling #20-2,
available at dor.sc.gov/policy�
See the SC1040 instructions, available at dor.sc.gov/forms, for a detailed explanation of these
deductions.
Line 43: Total South Carolina adjustments
Subtract line 42 from line 32 (if line 32 is zero, enter the amount from line 42 as a negative number in
[brackets] on line 43)�
Proration and Deduction
Line 45: Proration
Divide line 31, Column B, by line 31, Column A� Enter the result on line 45� Round to the second
decimal�
Line 46: Deduction adjustment
Part I - Itemized Deductions
If you itemized deductions on your federal return, enter the total itemized deductions on line 46, Part I.
If you did not itemize deductions on your federal return, enter the standard deduction on line 46, Part I.
Part II - State Tax Adjustment
If you itemized your deductions on your federal Income Tax return and deducted state and local Income
Tax or general Sales Tax, you may be required to subtract all or part of this amount from your total
federal itemized deductions when computing your South Carolina taxable income.
The federal law limits your total deduction for state and local Income, Sales, and Property taxes to a
combined total deduction of $10,000 ($5,000 if married filing separately). Any state and local taxes paid
above this amount cannot be deducted on your federal return�
14
|
|
In determining the state tax adjustment for a taxpayer whose tax deduction is limited to $10,000, you
may first apply real or personal Property Taxes reported on federal Schedule A, line 5b and line 5c
before applying state and local Income Taxes or general Sales Taxes reported on federal Schedule A, line
5a�
The state tax adjustment required for South Carolina is the lesser of your:
a� itemized deductions in excess of the standard deduction that would have been allowed if you
had used the standard deduction for federal Income Tax purposes
b� state and local Income Taxes or general Sales Taxes from your federal 1040, Schedule A, line 5a,
or
c� the $10,000 federal tax deduction limit minus deductible Property Taxes
Use the worksheet below to compute the state tax adjustment on the Schedule NR. Do not submit the
worksheet. Keep the worksheet with your tax records.
Worksheet for state tax adjustment
1� Itemized deductions from Part I 1�
2� Enter the federal standard deduction you would have been allowed if you
had not itemized� Enter zero if filing status is married filing separately
(MFS). (See federal instructions.) 2�
3� Subtract line 2 from line 1� (Enter zero if line 2 is greater than line 1�) 3�
4� Enter the amount of state and local Income Taxes or general Sales Taxes
from federal Schedule A� 4�
5� Subtract real estate taxes and personal Property Taxes reported on federal
Schedule A from the federal limit of $10,000 ($5,000 if MFS)� Enter the
difference, but not less than zero. 5�
6� Enter the lesser of line 3, line 4, or line 5� Enter this amount on line 46,
Part II of Schedule NR� 6�
Part III - Other expenses
Enter the total amount of other expenses that were included in the federal itemized deductions.
Other expenses include:
● Expenses deducted on the federal return related to any income that is exempt or not taxed by
South Carolina�
Some examples are:
■ investment interest to out-of-state partnerships and
■ interest paid to purchase US obligations
● Miscellaneous federal Estate Tax deduction on income of decedent
Total other expenses (enter on line 46, Part III) ������������������������������������������������������������III�
Part IV - Total Deductions Adjustment
Subtract the state tax adjustment (Part II) and other expenses (Part III) from itemized deductions (Part I).
Total of Part I, minus Part II and Part III (enter on line 46) ��������������������������������������������IV�
15
|
|
Line 48: South Carolina taxable income
Enter this amount on line 5 of your SC1040� If less than zero, enter zero�
Reminders
● If you or your spouse, if married filing jointly, were a part-year resident of South Carolina during
the tax year, provide your dates of residency at the top of the Schedule NR�
● Check the Schedule NR box on the front of your SC1040�
● Attach the Schedule NR and a copy of your federal return to your SC1040.
● Do not submit your Schedule NR separately. We can’t process your return if you submit your
Schedule NR separately�
● Keep a complete copy of your return, including attachments. Do not mail your only copy of any
tax document�
● We can’t process your return if it is filed without an SSN or ITIN.
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.
16
|