- 1 -
|
1350 STATE OF SOUTH CAROLINA
DEPARTMENT OF REVENUE SC SCH.TC-29
(Rev. 7/17/19)
QUALIFIED RETIREMENT PLAN 3409
dor.sc.gov
CONTRIBUTION CREDIT 20
Name SSN
1. Total qualified retirement plan contributions taxed by another state...................... 1. $
2. Total taxes paid to another state on contributions listed on line 1........................ 2. $
3. Life expectancy from Appendix B of Publication 590-B based on age at the time the
South Carolina retirement deduction is first claimed ................................... 3. years
4. Annual credit (divide line 2 by line 3). Enter here and on the SC1040TC ................. 4. $
5. South Carolina credit limitation (multiply line 1 by 7%) ................................. 5. $
6. Total credit limitation (enter the lesser of line 2 and line 5).............................. 6. $
The total amount of credit taken over your lifetime cannot be greater than the amount on line 6.
Instructions
Claim this credit if:
1. You lived in a state that taxed your retirement contributions at the time they were made into a qualified retirement
plan; and
2. You are now a South Carolina resident reporting this retirement income and claiming the retirement deduction.
You are not eligible for this credit if you are a South Carolina resident making contributions to retirement plans in
the current tax year.
The retirement plan must be:
1. A qualified retirement plan as defined in IRC Sections 401, 403, 408, and 457, including military retirement and all
public employee retirement plans of federal, state, and local governments; and
2. A retirement plan you became vested in while residing in the other state.
Calculating the credit:
• The credit amount is based on your life expectancy at the time you first claim the retirement deduction on line p of
the SC1040. Use the life expectancy table found in Appendix B of Publication 590-B at irs.gov.
• The total credit you can claim is limited to the amount of contributions taxed by the other state multiplied by 7%
(South Carolina's highest marginal rate for Individual Income Tax).
Example: John Doe moved to South Carolina from State Y. He lived in State Y for four years. State Y taxed his IRA
contributions for each of those years, even though the contributions were exempt on his federal returns.
Mr. Doe's W2s for four years while a resident of State Y show the following amounts:
Tax IRS State Y State Y State Y
Year Taxed Taxed Difference Tax Rate Tax Paid
1 $45,000 $49,000 $4,000 2% $80
2 $48,000 $53,000 $5,000 2.2% $110
3 $51,000 $57,000 $6,000 2.4% $144
4 $54,000 $61,000 $7,000 2.6% $182
Total:
Mr. Doe paid a total tax of $516 to State Y on his retirement contributions.
He is entitled to a credit based on his life expectancy at the time he first claims a retirement deduction. According to
Appendix B of Publication 590-B, the life expectancy of someone his age is 32.3 years.
34091025
|