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STATE OF SOUTH CAROLINA SC1041
DEPARTMENT OF REVENUE (Rev. 7/7/23)
dor.sc.gov FIDUCIARY INCOME TAX RETURN 3084
For the calendar year 2023 or Fiscal Taxable Year beginning - --and ending - 2023
Name of estate or trust FEIN

Name and title of fiduciary Mailing address City State ZIP County Code

ATTACH COPY OF FEDERAL FORM 1041 AND ALL SCHEDULES, INCLUDING SCHEDULES K-1. Extension Requested: Yes
A. Check all that apply: B. Trusts - check if: C. Check if: D. Was the final distribution
Initial return ESBT Testamentary Resident estate or trust of assets made during
Address change Simple trust Inter vivos Nonresident estate or trust the year?
Amended return Complex trust Yes
Final return Estate Grantor trust No
E. During this taxable year, was this estate or trust notified of any federal change for any prior years? Yes No If yes, attach copy.
F. Is a federal Schedule K-1 attached for each beneficiary? Yes No If yes, how many? If no, attach explanation.
If a nonresident estate or trust with income from both South Carolina and non South Carolina sources, complete and attach Part III, page 3 of SC1041.
1. Federal Taxable Income (Residents: Federal 1041; Nonresidents: Part III, line 22, column D) ................................... 1 00
2. Federal fiduciary exemption included in line 1 above............................................................................ 2 00
3. South Carolina modifications relating to gains allocated to principal or relating to other items not affecting federal
distributable net income (attach explanation) ..................................................................................... 3 00
4. Fiduciary's share of SC fiduciary adjustment (from Part II, line 1i) Addition Subtraction......................... 4 00
5. Net (add line 1 through line 4)........................................................................................................ 5 00
6. South Carolina fiduciary exemption (see instructions)........................................................................... 6< 00 >
7. South Carolina taxable income (subtract line 6 from line 5) .................................................................... 7 00
8. South Carolina tax (see instructions for tax computation schedule) .......................................................... 8 00
9. Taxon Lump Sum Distribution (SC4972) and/or Active Trade orBusiness Income (I-335)................................ 9 00
10. Nonrefundable credits (attach SC1040TC) ........................................................................................ 10< 00 >
11. Add line 8 through line 10. This balance cannot be less than zero............................................................ 11 00
12. South Carolina Income Tax withheld for nonresident beneficiaries (from Part IV) ......................................... 12 00
13. Total tax (add line 11 and line 12) ................................................................................................... 13 00
14. Amount paid with: (a) Extension 00 (b) SC withholding ........................ 00 14 00
15. Estimated Tax Payments
(a) Estimated Tax Payments .......................................................................................................... 15a 00
(b) Amount applied from 2022 return ................................................................................................ 15b 00
(c) Reserved for future use ............................................................................................................ 15c 00
Total (add line 15a and line 15b) ..................................................................................................... 15 00
16. Total payments (add line 14 and line 15) .......................................................................................... 16 00
17. Overpayment (subtract line 13 from line 16)....................................................................................... 17 00
18. Late file/pay penalty 00 Interest 00. . . . . . . . . . . . . . . . . . . . . . .............. 18 00
19. Penalty for underpayment of Estimated Tax (Attach SC2210)................................................................. 19 00
20. Balance (subtract line 16 from line 13. Add line 18 and line 19, if applicable) ...................... BALANCE DUE 20 00
21. Amount of line 17 to be credited to 2024 Estimated Tax........................................................................ 21 00
22. Net refund (subtract line 21 from line 17) ............................................................................ REFUND 22 00
DIRECT DEPOSIT Getting a refund? Direct deposit is fast, accurate, and secure!
23. Select Direct Deposit: Direct Deposit (line 24 required) (for US accounts only)
24. Type of Account: Checking Savings
Routing Must be 9 digits. The first two numbers Bank Account 1-17
Number (RTN) of the RTN must be 01 through 32. Number (BAN) digits

30841233

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2023
Page 2
Name and FEIN from page 1
PART I - SOUTH CAROLINA FIDUCIARY ADJUSTMENT
Adjustments to amount
included in federal
1. Additions to federal taxable income: distributable net income
a. State and local interest..................................................... 1a
b. State or local taxes measured by income deducted on the federal return............. 1b
c. Federal net operating loss carryover ......................................... 1c
d. Out-of-state losses ........................................................ 1d
e. Other additions to income (attach schedule) .................................. 1e
f. Total additions to federal income (add line 1a through line 1e) ............................................. 1f
2. Subtractions from federal taxable income:
a. Interest on US obligations .................................................. 2a
b. State Income Tax refunds reported as income on federal return ................. 2b
c. South Carolina net operating loss carryover (attach schedule)................... 2c
d. Active Trade or Business Income Deduction (I-335, line 5)...................... 2d
e. Other subtractions from income (attach schedule) ............................. 2e
f. Total subtractions from federal taxable income (add line 2a through line 2e) ................................. 2f
3. Total (subtract line 2f from line 1f) .......................................................................... 3
4. Fiduciary adjustment from other estates or trusts and partnership adjustment (attach schedule) .................... 4
5. South Carolina fiduciary adjustment (add line 3 and line 4) Addition or Subtraction ......................... 5
PART II - ALLOCATION OF SOUTH CAROLINA FIDUCIARY ADJUSTMENT
Complete ONLY if Part I indicates a South Carolina fiduciary adjustment. It is allocated among all beneficiaries and the fiduciary in the same ratio as
their relative shares of federal distributable net income. Nonresident beneficiaries: see Parts III and IV for computation of income.
1. Name of each beneficiary. Check box if beneficiary is a nonresident. All beneficiaries Shares of Federal 4. Shares of South Carolina
receiving a federal K-1 must be listed. Use attachment if more than eight beneficiaries. Distributable Net Income Fiduciary Adjustment
SSN/FEIN 2. Amount 3. Percent Addition or Subtraction
a. %
b. %
c. %
d. %
e. %
f. %
g. %
h. %
i. Fiduciary %
Totals 100%

Sign I declare that this return and all attachments are true, correct, and complete to the best of my knowledge and belief.
Here
Signature of fiduciary or officer representing fiduciary Date Taxpayer's email
I authorize the Director of the SCDOR or delegate to discuss this return, Preparer's printed name
attachments, and related tax matters with the preparer. Yes No
Paid Preparer's Date Check if Preparer's phone number
Preparer's signature self-employed
Use Only Firm's name (or PTIN or FEIN
yours if self-employed)
and address ZIP

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FOR NONRESIDENT ESTATES AND TRUSTS OR RESIDENT ESTATES AND TRUSTS
WITH NONRESIDENT BENEFICIARIES
2023
PART III - COMPUTATION OF FEDERAL TAXABLE INCOME OF THE ESTATE OR TRUST FROM
SOUTH CAROLINA SOURCES Page 3
A. These items correspond to page 1 of the federal 1041. B. Total income as C. Portion of D. Nonresident fiduciary's
reported on Column B portion of Column C and
federal 1041 from South Carolina capital gains not
sources distributed
1. Interest income.............................................
2. Dividends..................................................
3. Business income or (loss) ...................................
4. Capital gain or (loss) ........................................
5. Rents, royalties, partnerships, other estates and trusts, etc. ......
6. Farm income or (loss) .......................................
INCOME
7. Ordinary gain or (loss).......................................
8. Other income ..............................................
9. Total income (add line 1 through line 8)........................
10. Interest....................................................
11. Taxes ... ..................................................
12. Fiduciary fees ..............................................
13. Charitable deduction ........................................
14. Attorney, accountant, and return preparer fees .................
DEDUCTIONS 15a. Other deductions NOT subject to the 2% floor ..................
15b. Net operating loss deduction .................................
16. Total (add line 10 through line 15b) ...........................
17. Subtract line 16 from line 9...................................
18. Distributions to beneficiaries .................................
19. Federal Estate Tax (fiduciary) ................................
Federal Estate Tax (beneficiary) ..............................
20. Exemption ................. ................................
21. Total (add line 18 through line 20) ............................
22. Taxable income (subtract line 21 from line 17) ..................
23. Total percent of all nonresident beneficiaries
(from Part II, page 2) ........................................ %
24. Total South Carolina income of nonresident beneficiaries
(multiply line 22 by line 23)...................................
PART IV - NONRESIDENT BENEFICIARIES' SHARES OF INCOME AND CREDITS
A. Name B. Beneficiary's C. South Carolina D. South Carolina E. Less amounts F. Tax to be withheld
percentage capital gain ordinary income exempt from (net amount of
from Part II (Part III, line 4, (Part III, line 22, column withholding by column C, column D,
column C multiplied C less capital gains I-41 Affidavit and column E
by column B) multiplied by column B) multiplied by South
Carolina's top marginal
Individual Income Tax
rate for the tax year)
a.
b.
c.
d.
e.
TOTALS %

PART V - NONRESIDENT EXEMPTION ALLOWANCE FOR FIDUCIARY
1. Exemption allowance claimed on federal 1041 1
2. Ratio of total South Carolina income (Part III, line 9, column D) to total federal income (Part III, line 9, column B) 2 %
3. South Carolina nonresident fiduciary exemption (multiply line 1 by line 2) Enter on page 1, line 6 3

30843239

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                                                INSTRUCTIONS 
                                                                  
SC1041 K-1  
The SC1041 K-1, Beneficiary's Share of South Carolina Income, Deductions, Credits, Etc., is prepared by the estate or trust to show 
each beneficiary's share of the entity's income. Each item of income is adjusted as required by South Carolina law and allocated or 
apportioned to South Carolina or to states other than South Carolina. 
 
REMINDERS   
 • You must add back the federal deduction for qualified business income provided in IRC Section 199A.  
 • You must add back any charitable deduction for a gift of land under IRC Section 170 unless the intent of the donor meets the 
   requirements of SC Code Section 12-6-5590.  
 • South Carolina specifically does not recognize IRC Section 168(k) bonus depreciation.  
 • The SC8736 is the extension form for partnership and fiduciary returns.  
 • An amended SC1041 must be filed whenever the IRS adjusts a federal 1041.  
 
FILING REQUIREMENTS  
The fiduciary of a resident estate or trust must file an SC1041, South Carolina Fiduciary Income Tax Return, if the estate or trust: 
 • is required to file a federal Fiduciary Income Tax return for the taxable year  
 • had any South Carolina taxable income for the taxable year 
 • had a beneficiary who is a nonresident  
 
The fiduciary of a nonresident estate or trust must file a South Carolina Fiduciary Income Tax return if the estate or trust had income or 
gain that came from South Carolina sources.   
 
Income from South Carolina sources includes income or gain from:  
 • real or tangible personal property located within South Carolina 
 • a business, profession, or occupation carried on in South Carolina  
 • services performed within South Carolina 
 
For a nonresident estate or trust, income from the following is not considered to come from South Carolina sources unless it is part of 
the income from a business, trade, profession, or occupation carried on within South Carolina: 
 • annuities 
 • interest 
 • dividends 
 • gain from the sale or exchange of intangible personal property  
 
RESIDENT AND NONRESIDENT ESTATES AND TRUSTS  
A resident estate is the estate of a person who was a South Carolina resident at the time of death. All other estates are nonresident 
estates.  
 
A resident trust is any trust administered in South Carolina. All other trusts are nonresident trusts, including a trust administered outside 
of South Carolina that is required to follow the laws of South Carolina for administration of the trust. 
 
WHEN AND WHERE TO FILE  
The South Carolina Fiduciary Income Tax return is due by the 15th day of the fourth month after the close of the taxable year. Failure to 
file the return by the due date may result in a penalty. If you need additional time to file your SC1041, you must request an extension 
by the due date of the return.  
 
The fastest, easiest way to request your extension to file is by paying your balance due using our free online tax portal, MyDORWAY, at 
dor.sc.gov/pay. Select Business Income Tax Payment to get started. Your payment on MyDORWAY automatically submits your 
filing extension request. No additional form or paperwork is required. You can also request an extension by filing a paper copy of the 
SC8736, available at dor.sc.gov/forms. 
 
The SCDOR will accept a federal extension instead of the SC8736 if the South Carolina Income Tax return does not have a 
balance due when the return is filed. If you use the federal extension instead of the SC8736, it is not necessary to send South 
Carolina a copy of the federal extension form. Attach a copy of the federal extension when you file your SC1041 within the extended 
period. Mark the Extension Requested box on page 1 of your SC1041. 
 
Taxpayers can file their SC1041 (along with their federal fiduciary return) electronically through Modernized Electronic Filing (MeF) in a 
single transmission using third party tax preparation software.  
 
If filing by paper, mail balance due returns to SCDOR, Taxable Fiduciary, PO Box 125, Columbia, SC 29214-0038.  
Mail refunds or zero tax returns to SCDOR, Nontaxable Fiduciary, PO Box 125, Columbia, SC 29214-0039.

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PAYMENT OF TAX
The balance of tax due on page 1, line 20 of your SC1041 must be paid in full. Failure to pay your tax on time can result in penalty and
interest. The fastest, easiest way to pay your balance due is by using our free online tax portal, MyDORWAY, at dor.sc.gov/pay.
Select Business Income Tax Payment to get started.

You can also attach a check to your SC1041. Include the name and FEIN of the estate or trust, SC1041, and the tax year in the memo.
Do not send cash.

If you owe $15,000 or more in connection with any SCDOR return, you must file and pay electronically according to SC Code Section
12-54-250, available at dor.sc.gov/policy.

ACCOUNTING PERIOD
The accounting period and the method of accounting used for the SC1041 must be the same as that used for federal tax purposes. If
the estate's or trust's taxable year method of accounting is changed for federal purposes, the change applies to the SC1041.

FEDERAL ADJUSTMENTS
Any taxpayer whose income has been adjusted by the IRS should report the adjustments to the SCDOR after the federal adjustments
become final between the taxpayer and the IRS. File an amended SC1041 for the appropriate tax year to report the federal adjustment
to the SCDOR. Attach a copy of the IRS revenue agent's report showing the adjustments. Mark the Amended return box on page 1 of
your SC1041.

FIDUCIARY REPORTING OBLIGATIONS TO BENEFICIARIES
Fiduciaries must provide to each resident beneficiary the amount of fiduciary adjustment to be reported on the beneficiary's South
Carolina Individual Income Tax return. (See column 4, Part II, page 2 of the SC1041.) Fiduciaries must also provide to each
nonresident beneficiary the amount of the nonresident beneficiary's share of income and credits from Part IV, page 3 of the SC1041.
Fiduciary adjustments, beneficiaries' shares of fiduciary adjustments, and beneficiaries' shares of income and credits are computed in
Parts I, II, III, and IV, pages 2 and 3 of the SC1041. The following rules explain which of these parts should be completed.

• If a resident estate or trust has only resident beneficiaries, or if no amounts are distributable to nonresident beneficiaries, only
complete Parts I and II.
• If a resident estate or trust has nonresident beneficiaries, it is generally necessary to complete all parts. You do not have
to complete Part IV if amounts distributed to nonresidents are not taxable.
• If all income of a resident estate or trust is taxable to the fiduciary and no distributions are made, or required to be made,
only Part I must be completed.
• If a nonresident estate or trust has resident and/or nonresident beneficiaries, all parts must be completed. If all the income is
taxable to the fiduciary, only Parts III and V must be completed.

DEDUCTIBILITY OF EXPENSES OF ADMINISTRATION
Expenses of administering an estate must be deducted in the same way they are deducted for federal tax purposes. If these expenses
are deducted on the federal 1041, they may be deducted on the SC1041. If these expenses are deducted for federal Estate Tax
purposes, they may not be deducted on the SC1041.

EXEMPT TRUST
A trust exempt from federal Income Tax because of its purpose or activities is also exempt from South Carolina Income Tax.

CHARITABLE REMAINDER TRUSTS
South Carolina has adopted IRC Section 664, which outlines the basic rules for charitable remainder trusts. This means the South
Carolina Income Tax treatment of these trusts is generally the same as for federal Income Tax. After preparing the required annual
federal filing forms including Form 5227 (Split-Interest Trust Information Return), complete the information section on page 1 of the
SC1041. At the top of page 1, type or print the following statement:

This is a charitable remainder trust as described in IRC Section 664. See attached Form 5227 for South Carolina income.

To prepare federal Form 5227 for South Carolina income, prepare a separate federal Form 5227, taking into account the differences in
federal and state taxable income. For a summary of these differences, see the instructions for Part I of the SC1041. Divide the South
Carolina taxable income by the federal taxable income. Use that fraction to prorate the beneficiaries' South Carolina fiduciary
adjustment. Indicate the proration on each SC1041 K-1 form. Attach copies of all federal forms filed in the year to the South Carolina
forms.

LINE INSTRUCTIONS

Heading: Enter the name, address, FEIN, and county code of the estate or trust in the fields on page 1. Answer all questions at the top
of the SC1041. County codes are listed in these instructions.

Line 1 - Federal taxable income of fiduciary: Enter on line 1 the federal taxable income shown on page 1 of the federal 1041.
Nonresident estates and trusts should enter on line 1 the amount reported on Part III, line 22, column D of the SC1041. See instructions
for Part III - Computation of the Federal Taxable Income of the Estate or Trust from South Carolina Sources.

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Line 2 - Federal fiduciary exemption: Enter on line 2 the fiduciary exemption claimed on the Federal Fiduciary Income Tax return to
the extent it is included in the amount reported on line 1. (See the federal 1041, available at irs.gov).

Line 3 - Modifications related to principal or non-distributable income: Some of the modifications described in Part I may apply to
gains allocated to principal or to other items not affecting federal distributable income. For example, gain (or loss) from sale of real
estate located outside of South Carolina is not taxable to South Carolina. A line 3 modification is required if property sold has a different
basis for South Carolina Income Tax purposes than it does for federal Income Tax purposes. An individual, trust, or estate may claim a
deduction of 44% of net capital gain. The deduction is computed at the beneficiary level except for capital gains taxable to the trust or
estate. Net capital gain is the excess of net long term capital gain over net short term capital loss, and is reduced by any carryover
losses. If any of these or similar modifications apply, attach a schedule listing the adjustments.

Line 4 - South Carolina fiduciary adjustment: A resident fiduciary should enter on line 4 its portion of the fiduciary adjustment from
Part II, line 1, column 4. A nonresident estate or trust should not make adjustments on this line. See instructions for Part II - Allocation
of South Carolina Fiduciary Adjustment.

Line 5 - Net: Add amounts on line 1 through line 4. Enter the result on line 5.

Line 6 - South Carolina fiduciary exemption: Enter the South Carolina fiduciary exemption on line 6. The South Carolina fiduciary
exemption for a resident estate or trust is the same amount of exemption allowable for federal Income Tax purposes. Nonresident
estates or trusts should complete Part V to determine the portion of the federal fiduciary exemption which is allowed as the South
Carolina fiduciary exemption. See instructions for Part V - Nonresident Exemption Allowance of Fiduciary.

Line 7 - South Carolina taxable income: Subtract line 6 from line 5 and enter the balance on line 7. Compute your tax on this amount.

Line 8 - South Carolina tax: To determine the amount of the Fiduciary Income Tax liability, refer to this tax computation schedule, and
compute the tax. Enter the amount on line 8.

2023 Tax Computation Schedule for Estates and Trusts
Tax Computation Schedule Example of computation
If the amount on line 7 of the SC1041 is: South Carolina income subject to tax on line 7 of the
At But less SC1041 is $16,940. The tax is calculated as follows:
least than Compute the tax as follows:
$0 $3,330 0% times the amount $16,940 income from line 7 of the SC1041
3,330 16,680 3% times the amount minus $100 X .064 percent from tax computation schedule
16,680 or more 6.4% times the amount minus $670 1,084
- 670 amount from tax computation schedule
$ 414 tax to be entered on line 8 of the SC1041

Line 9 - South Carolina tax on lump sum distributions and/or on active trade or business income: If a resident estate or trust
received a lump sum distribution and is taxed according to IRC Section 402(e), the resident estate or trust is also subject to a South
Carolina tax on the lump sum distribution. Complete the SC4972, Tax on Lump-Sum Distributions, and attach to the return. If filing an
I-335, Active Trade or Business Income Reduced Rate Computation, attach and include the amount of tax from line 9.

Line 10 - Nonrefundable credits: Enter nonrefundable credits from the SC1040TC, 2023 Tax Credits. Attach the appropriate credit
form. The credit may not exceed the sum of the tax on line 8 and line 9.

Line 11 - Net tax: Add line 8 and line 9 less the amount on line 10. The balance cannot be less than zero.

Line 12 - South Carolina tax withheld for nonresident beneficiaries: Estates and trusts are required to withhold taxes on each
nonresident beneficiary's share of income from South Carolina sources. The withholding rate is computed at South Carolina's top
marginal Individual Income Tax rate for the tax year. For information on income from South Carolina sources see FILING
REQUIREMENTS on page 1 of the instructions. Enter the amount withheld from each nonresident beneficiary in Part IV, column F.
Prepare an SC41, Fiduciary Report on Nonresident Beneficiary Tax Withheld, for each nonresident beneficiary from whom an amount
is withheld. A copy of this report must be forwarded to the beneficiary for whom the tax is withheld so that the beneficiary may attach it
to their South Carolina Income Tax return.

Note: A trust or estate is not required to withhold taxes from South Carolina taxable income of a nonresident beneficiary who submits
an I-41, Nonresident Beneficiary Affidavit and Agreement Income Tax Withholding, and agrees to file returns and pay applicable taxes.
The trust or estate must remit all I-41 Affidavits to the SCDOR. Attach the I-41 Affidavits to the SC1041 or SC8736, Request for
Extension of Time to File South Carolina Tax Return, by the 15th day of the fourth month following the close of the trust or estate's tax
year.

Line 14 - Amount paid with request for extension and SC withholding: Enter amounts paid with Request for Extension on line
14a. Enter amount of withholding on line 14b and attach copies of your W-2s or 1099s. Include any Nonresident Seller Withholding paid
with an I-290 on line 14b. Enter the total of 14a and 14b on line 14.

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Line 15 - Estimated tax payments: Enter in (a) the total SC1041ES Estimated Tax payments made before filing your South Carolina
tax return. Enter in (b) any amounts transferred to your Estimated Tax account from your prior year tax return.

Line 16 - Total payments: Reduce the amount on this line by any Estimated Income Tax assigned to beneficiaries. Write the assigned
amount on the dotted line portion of this line.

Line 18 - Late filing and/or late payment penalties and interest: If you have calculated failure to file/pay penalties and interest, enter
in the appropriate blanks and put the total of both on line 18.

Line 19 - Underpayment of Estimated Tax: If the fiduciary underpaid its Estimated Tax, complete the SC2210, Underpayment of
Estimated Tax By Individuals, Estates, And Trusts, and attach it to the return. If the fiduciary owes a penalty, show the amount in the
space provided. If the fiduciary is due a refund, subtract the penalty amount from the overpayment shown on line 17. If the fiduciary
owes tax, add the penalty to the tax due and show the total on line 20. The SC2210 is available at dor.sc.gov/forms.

Line 20 - Balance Due: Subtract line 16 from line 13, add line 18 and/or 19, if applicable, and enter the total on line 20.

Line 21 - Amount credited to Estimated Tax: To apply any or all of the refund toward next year's Estimated Tax, enter the amount on
line 21.

Line 22 - Net refund: If you have an amount on line 21, subtract line 21 from line 17 and enter the Net refund on line 22. Otherwise,
enter the amount from line 17.

Line 23 - Direct Deposit: Mark an X in the box to receive your refund by direct deposit. This is the fastest, easiest option for most filers.
Enter your bank information on line 24.

Line 24 - Bank Information: You must enter complete and correct account information. If you are requesting direct deposit of your
refund and your account information is not complete and correct, we will mail a paper check to the address listed on your return.

You cannot have your funds directly deposited into an account located outside of the United States.

Enter your account information.
1. Mark an X to choose checking or savings account.
2. Enter your 9 digit routing transit number (RTN). The RTN should begin with 01 through 12 or 21 through 32. Do not use a
deposit slip to verify the RTN.
3. Enter your bank account number (BAN). The BAN contains 17 or fewer alphanumeric digits. Enter the BAN from left to right.
Do not enter hyphens, spaces, special symbols, or the check number.

PART I - SOUTH CAROLINA FIDUCIARY ADJUSTMENT

Part I is for the computation of the South Carolina fiduciary adjustment. This adjustment is the net amount of all the modifications of
federal income and deductions that are permitted or required under the South Carolina Income Tax Act.

MODIFICATIONS THAT INCREASE FEDERAL TAXABLE INCOME

Line 1a - State and local interest: Enter on line 1a any state or municipal bond interest of states and political subdivisions, other than
South Carolina.

Line 1b - State or local taxes measured by income: Enter on line 1b the total of any taxes measured by income or fees or payments
in lieu of Income Taxes that were deducted on the federal Fiduciary Income Tax return.

Line 1c - Federal net operating loss carryover: Enter on line 1c the amount of any federal net operating loss (NOL) that you used in
computing the federal taxable income reported on line 1, page 1 if you have South Carolina NOL. South Carolina recognizes federal
NOL rules. No carrybacks are allowed.

Line 1d - Out-of-state losses: Enter on line 1d out-of-state losses from a business, trade, or profession claimed on the federal
Fiduciary Income Tax return.

Line 1e - Other additions to income: Enter on line 1e any other additions required. Attach an explanation for the adjustments made.
Additions to income include the federal Estate Tax deductions on income in respect of decedent; carryover of capital losses prior to
January 1, 1985; any expense deducted on the federal Fiduciary Income Tax return related to any income exempt or not taxable by
South Carolina; South Carolina tax exempt income allocable to charitable distributions; and any deduction for qualified business income
under IRC Section 199A. Nonresident sellers of South Carolina real property and associated tangible personal property that elect out of
installment sales treatment for state Income Tax purposes pursuant to Section 12-8-580 will have an addition to federal taxable income
in the year of sale so as to include the entire gain in South Carolina taxable income.

Line 1f - Total additions: Add line 1a through line 1e. Enter total on line 1f.

MODIFICATIONS THAT DECREASE FEDERAL TAXABLE INCOME

Line 2a - Interest on US obligations: Enter interest income received from obligations of the United States or its possessions to the
extent it is included in line 1, page 1.
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Line 2b - State Income Tax refunds: Enter the amount of any state Income Tax refunds or any other Income Tax refunds to the extent
included in line 1, page 1.

Line 2c - South Carolina net operating loss (attach schedule): Enter the amount of South Carolina net operating loss carryover to
which the estate or trust is entitled. For losses occurring after December 31, 1984, compute the loss using the federal method.

Line 2d - Active Trade or Business Income Deduction: Enter the amount from I-335, line 7.

Line 2e - Other subtractions from income: Enter any other subtraction adjustment required. Additional subtraction adjustments
include the following:

• Accumulation Distribution: If during the year the estate or trust received a distribution as a beneficiary of another estate or
trust that was made from accumulated earnings from prior years, such amount may be excluded from the current South
Carolina fiduciary income to the extent it was reported in line 1, page 1.
• Out-of-State Income: If you have reported income from a business, trade, or profession located outside South Carolina, enter
this amount on line 2d. Personal service income of a resident is taxable to South Carolina.
• Reduction of Basis Due to Federal Investment Credit: If you elect to reduce basis for federal purposes due to investment
credit, the amount of reduction will be an ordinary expense for South Carolina purposes.

Line 2f - Total subtractions: Add line 2a through line 2e. Enter the total on line 2f.

Line 3 - Total: Subtract line 2f from line 1f. Enter the balance on line 3.

Line 4 - Fiduciary and Partnership adjustment (attach schedule): If during the taxable year the estate or trust was a beneficiary of
another estate or trust and is entitled to an adjustment from the other estate or trust, enter the amount of the adjustment on line 4. If
during the taxable year the estate or trust received income from a Partnership, Joint Venture, or S Corporation, enter on line 4 the
amount of the adjustment, if any.

Line 5 - South Carolina fiduciary adjustment: Add line 3 and line 4. Enter the total on line 5.

PART II - ALLOCATION OF SOUTH CAROLINA FIDUCIARY ADJUSTMENT

The South Carolina fiduciary adjustment is divided among the beneficiaries and the fiduciary in proportion to their share of the federal
distributable net income. If the separate share rule is being used, allocate the fiduciary adjustment accordingly. If there is no federal
distributable net income, each beneficiary's share of the South Carolina fiduciary adjustment must be in proportion to each share of the
estate or trust income distributed. Any balance of the South Carolina fiduciary adjustment not allocated to the beneficiaries is allocable
to the fiduciary. The estate or trust must advise each beneficiary of their share of the South Carolina fiduciary adjustment. The amount
reported in column 4 is the amount which the fiduciary is required to submit to each beneficiary. Part II provides for the computation of
the fiduciary's and beneficiary's share of the federal distributable net income. The Part II percentages are used in dividing the South
Carolina fiduciary adjustment for both resident or nonresident beneficiaries.

Column 1 - Name of beneficiary: Enter the name of the beneficiary beside letters a-h. Check the box if the beneficiary is a
nonresident of South Carolina and enter the SSN or FEIN.

Column 2 - Shares of federal distributable net income: Total federal distributable net income must be the same as line 7, Schedule
B of your federal 1041.

Column 3 - Percent: Indicate percentages with two digits, such as 32%, 3.2% and .32%.

Column 4 - Shares of South Carolina fiduciary adjustment: Enter the South Carolina Fiduciary Adjustment from Part 1, line 5 as the
total of Column 4. Multiply each percentage in Column 3 by the total in Column 4. Indicate at the top of column 4 whether the
adjustments are additions or subtractions. The amount after each name is reported as a modification, either an addition to or
subtraction from federal taxable income. If the adjustment is a subtraction, it may not offset more than the amount reportable from the
fiduciary for federal tax purposes (except in the final or termination year). Each resident beneficiary should add the explanation:
Fiduciary adjustment - (name of estate or trust). A copy of this schedule (or its information) must be provided to each resident
beneficiary. The fiduciary's share of the adjustment is entered on line 4 of page 1.

Column 2 through Column 4: Attach a detailed explanation of the allocation method used if there is no federal distributable net
income, or if the percentages do not agree with the relative shares indicated on the federal 1041, Schedules B and K-1. For an estate
or trust in which all beneficiaries are South Carolina residents, the remaining portion (Part III, Part IV, and Part V of page 3) of the return
may be omitted. If a fiduciary has nonresident beneficiaries, Part III and Part IV must be completed.

Signature: The fiduciary of the estate or trust must sign the Fiduciary Income Tax return. Check the Yes box for release of confidential
information. This authorizes the Director of the SCDOR or delegate to discuss this return, its attachments, and any notices,
adjustments, or assessments with the preparer whose name is provided.

ATTACH COPY OF YOUR FEDERAL RETURN

You must attach a copy of your federal Fiduciary Income Tax return as filed with the IRS (including all schedules) to your SC1041.
Failure to attach a copy of your federal Fiduciary Income Tax return will cause a delay in the processing of your SC1041.
5

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PART III - COMPUTATION OF FEDERAL TAXABLE INCOME OF THE ESTATE OR TRUST FROM SOUTH
CAROLINA SOURCES

Part III is to be completed by all resident estates and trusts with nonresident beneficiaries, and by all nonresident estates and trusts with
income or gain from South Carolina sources. Nonresident estates or trusts should report to South Carolina only that part of their federal
taxable income derived from South Carolina sources. See Income from South Carolina Sources under FILING REQUIREMENTS for
more information. In order to determine the income to be reported and the related modifications, complete Part III.

Column B: Enter the total income or deductions reported or claimed on the federal Fiduciary Income Tax return for each item listed in
column A.

Column C: Enter the portion of each item of income reported in Column B that is derived from South Carolina sources. Use direct
accounting whenever possible. Intangible income will not be considered to be from South Carolina sources except where it is a part of a
business, trade, or occupation carried on in South Carolina. Any item entered in column C should reflect only the amount that remains
after all modifications have been performed.

• State or local Income Taxes deducted on the federal return would not be included in column C.
• State Income Tax refunds reported as income on the federal return would not be included in column C.
• Any income from other estates, trusts, or partnerships should be modified, if necessary, before the item is entered in
column C.
• Capital gains from South Carolina sources should be entered in column C only if the gain is distributed to the beneficiaries.
• Depreciation and depletion on income in respect of a decedent should be entered on the appropriate lines of column C
(whether or not passed directly to the beneficiaries).
• Deductions should be directly allocated where possible. If it is not possible to directly relate those deductions to income from
South Carolina sources, they should be apportioned by multiplying the deductions by the ratio of total South Carolina income
(line 9, column C) divided by total federal income (line 9, column B).
• Net income of the estate or trust from South Carolina sources, after all modifications, is to be entered on line 22, column C.
• Enter on line 23, column C only the total percentages of all nonresident beneficiaries. These percentages come from Part II,
page 2.
• Enter on line 24, column C the total income from South Carolina sources of all nonresident beneficiaries. This amount is
computed by multiplying line 22, column C by the percentage entered on line 23, Column C.

Column D: Only nonresident fiduciaries complete this column. Enter the portion of column C applicable to the fiduciary. The amount to
be entered in column D is computed by multiplying each entry in column C by the fiduciary's percentage of the South Carolina fiduciary
adjustment as shown in Part II, page 2. A capital gain from South Carolina sources that is not distributed to the beneficiaries should be
entered on line 4 of column D. Line 22, column D is the net income of the nonresident estate or trust from South Carolina sources
applicable to the fiduciary which should be entered on line 1, page 1.

PART IV - NONRESIDENT BENEFICIARIES' SHARES OF INCOME AND CREDITS

Column A: Enter the names of the nonresident beneficiaries receiving distributable South Carolina income. If the SSNs or FEINs are
not listed on either page 2 or on the SC41, attach a schedule of this information. It is important that the correct SSNs or FEINs be listed
for each beneficiary to assure proper posting to their accounts.

Column B: Enter each nonresident beneficiary's percentage as computed in Part II, page 2.

Column C: Enter the capital gain (loss) reportable to South Carolina by each nonresident beneficiary.

Column D: Enter each beneficiary's portion of the total ordinary income from South Carolina sources by multiplying column B by the
amount on Part III, line 22, column C after subtracting any capital gain on line 4.

Column E: Enter the amount of each nonresident beneficiary's income that is exempt from withholding by I-41 Affidavit.

Column F: Add column C and column D and subtract column E amounts. Enter in column F withholding on these amounts for each
beneficiary. The withholding is computed at South Carolina's top marginal Individual Income Tax rate for the tax year. The tax reported
in column F is to be withheld by the fiduciary from the beneficiary. It is to be paid by the fiduciary to the state of South Carolina at the
time Estimated Tax payments are due. If any tax is required to be withheld, complete the SC41 for each nonresident beneficiary.

- 10 -

PART V - NONRESIDENT EXEMPTION ALLOWANCE FOR FIDUCIARY 
 
Part V is to be completed only by nonresident estates or trusts. This part is to assist in the computation of the exemption allowance 
available to the nonresident estate or trust. 
 
Line 1 - Exemption allowance per federal return: Enter the exemption allowance claimed on the federal Fiduciary Income Tax return. 
 
Line 2 - Ratio: Divide the amount shown on Part III, line 9, column D by the amount shown on  Part III, line 9, column B. 
 
Line 3 - South Carolina nonresident fiduciary exemption: Multiply the amount on line 1 by the percentage on line 2 and enter the 
result on Part V, line 3 and on line 6 on the SC1041.  
 
WHICH FIDUCIARIES MUST FILE A DECLARATION OF ESTIMATED TAX? 
Generally, a fiduciary must file a Declaration of Estimated Tax if the expected total amount of tax owed when the return is filed will be 
$100 or more. Estates are not required to file a Declaration of Estimated Tax for the first two tax years after the decedent's death. The 
fastest, easiest way to pay your balance due is by using our free online tax portal, MyDORWAY, at dor.sc.gov/pay. Select Business 
Income Tax Payment to get started. Do not submit the SC1041ES if you pay online. 
 
You can also attach a check to the completed SC1041ES, South Carolina Declaration of Estimated Tax for Fiduciaries. Include the 
name of the fiduciary, FEIN, SC1041ES, and the tax year in the memo. Do not send cash. Attach payment to the SC1041ES and mail 
to SCDOR, Estimated Tax, PO Box 125, Columbia, SC 29214-0038. The SC1041ES is available at dor.sc.gov/forms.  
 
Any fiduciary required to file a Declaration of Estimated Tax must estimate and pay at least 90% of the final actual tax liability or an 
amount equal to 100% of the tax from the prior year's return (if the return covered all twelve months of the year). Certain estates and 
trusts cannot base their Declaration of Estimated Tax on 100% of their prior year's tax liability. Estates and trusts with an adjusted gross 
income of more than $150,000 as shown on the return for the preceding tax year must pay 110% of their prior year's  tax liability. To 
compute adjusted gross income use federal guidelines and make South Carolina adjustments. Failure to meet the estimate 
requirements may subject the fiduciary to an underpayment penalty. Underpayment of estimate penalty is calculated on the SC2210. 
The SC2210 is available at dor.sc.gov/forms. 
 
                                                       COUNTY CODES
 
 COUNTY                                    CODE COUNTY                                     CODE COUNTY                                                             CODE
 
 Abbeville ..............................  01   Dillon ................................... 17   McCormick ..........................                               33
 Aiken ................................... 02   Dorchester ...........................     18   Marion .................................                           34
 Allendale .............................   03   Edgefield .............................    19   Marlboro ..............................                            35
 Anderson .............................    04   Fairfield ...............................  20   Newberry .............................                             36
 
 Bamberg ..............................    05   Florence ..............................    21   Oconee ................................                            37
 Barnwell ..............................   06   Georgetown .........................       22   Orangeburg .........................                               38
 Beaufort ...............................  07   Greenville ............................    23   Pickens ................................                           39
 
 Berkeley ..............................   08   Greenwood ..........................       24   Richland ..............................                            40
 Calhoun ...............................   09   Hampton ..............................     25   Saluda .................................                           41
 Charleston ...........................    10   Horry ...................................  26   Spartanburg ........................                               42
 Cherokee .............................    11   Jasper .................................   27   Sumter .................................                           43
 Chester ................................  12   Kershaw ..............................     28   Union ...................................                          44
 Chesterfield .........................    13   Lancaster ............................     29   Williamsburg ........................                              45
 Clarendon ............................    14   Laurens ...............................    30   York .....................................                         46
 Colleton ...............................  15   Lee ...................................... 31
 Darlington ............................   16   Lexington .............................    32

 APO/FPO Addresses .............................................................................................................................................   99
 Outside of South Carolina ......................................................................................................................................  99
 Outside of United States ........................................................................................................................................ 88

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. 
                                                        7

- 11 -

 TAX WITHHELD FOR NONRESIDENT BENEFICIARIES 
  
 Under South Carolina (SC) law, the executor, administrator, or other fiduciary of an estate or trust is required to withhold on the amount 
 of SC taxable income distributable to each nonresident beneficiary. The withholding is computed at SC's top marginal Individual Income 
 Tax rate for the tax year. The amount withheld from each beneficiary will be reflected on Part IV, column F of the SC1041. Complete an 
 SC41 for each beneficiary from whom an amount is withheld. Be sure to put the current year in the space provided. 
  
 The SC41 may be submitted with the SC1041 or separately. If mailing separately, mail to SCDOR, Taxable Fiduciary, PO Box 125, 
 Columbia, SC 29214-0038.   
  
 Complete three copies and distribute them to: 
  • the beneficiary from whom the tax is withheld, so that the beneficiary may attach it to their SC Income Tax return 
  • the beneficiary, for their records 
  • the fiduciary, for their records 
  
 The amount of tax withheld by the fiduciary should be claimed as SC Income Tax withheld on the SC Income Tax return. 
  
 Any Estimated Income Tax payments assigned to beneficiaries must be reported to them on the SC41, along with instructions 
 to enter this amount as tax withheld on their SC Income Tax return. The SC41 must be attached to the beneficiary's return to 
 claim this payment.

                                               STATE OF SOUTH CAROLINA - INCOME TAX 
  SC41              FIDUCIARY REPORT OF NONRESIDENT BENEFICIARY TAX WITHHELD                                                                                        20
                                                          Estate's or Trust's tax year end                                              
Nonresident beneficiary's name                       SSN/FEIN                                          Name of estate or trust                                 FEIN 
 
Street address                                                  County                    Nonresident beneficiary's share of distributable income 
                                                                                          from South Carolina sources
                                                                                          Ordinary income . . . . . . . . . . . . . . . . . .   $ 
City                                      State                                    ZIP    Long-term capital gain  . . . . . . . . . . . . .   $ 
                                                                                          Short-term capital gain . . . . . . . . . . . . .  $ 
                                                                                          Amount of tax withheld . . . . . . . . . . . . .   $

                                       STATE OF SOUTH CAROLINA - INCOME TAX 
  SC41              FIDUCIARY REPORT OF NONRESIDENT BENEFICIARY TAX WITHHELD                                                                                        20
                                                          Estate's or Trust's tax year end

Nonresident beneficiary's name                       SSN/FEIN                                          Name of estate or trust                                 FEIN 
 
Street address                                                  County                    Nonresident beneficiary's share of distributable income 
                                                                                          from South Carolina sources
                                                                                          Ordinary income . . . . . . . . . . . . . . . . . .    $ 
City                                      State                                    ZIP    Long-term capital gain  . . . . . . . . . . . . .   $ 
                                                                                          Short-term capital gain . . . . . . . . . . . . .  $ 
                                                                                          Amount of tax withheld . . . . . . . . . . . . .   $

                                       STATE OF SOUTH CAROLINA - INCOME TAX 
  SC41              FIDUCIARY REPORT OF NONRESIDENT BENEFICIARY TAX WITHHELD                                                                                        20
                                             Estate's or Trust's tax year end 

Nonresident beneficiary's name                       SSN/FEIN                                          Name of estate or trust                                 FEIN 
 
Street address                                                  County                    Nonresident beneficiary's share of distributable income 
                                                                                          from South Carolina sources
                                                                                          Ordinary income . . . . . . . . . . . . . . . . . .   $ 
City                                      State                                    ZIP    Long-term capital gain  . . . . . . . . . . . . .   $ 
                                                                                          Short-term capital gain . . . . . . . . . . . . .  $ 
                                                                                          Amount of tax withheld . . . . . . . . . . . . .   $

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