2023 Software Developer                              Test       Cases           
                               South Carolina Department                   of   Revenue         

#1 Test Case     

Steven and   Sue  are residents       of SC     and file a joint   federal return.  They filed  an extension     for their               
federal return.   Steven    and   Sue    are currently      living in Ontario,   Canada.    They are   both    over age 65.              
Steven’s date   of   birth is April   21, 1957, and Sue’s      date of   birth   is July 13,   1955. They  have federal   taxable                 
income of   $680,000           

Both taxpayers    are retired     military.    Steven      received   $50,000    of military    retirement     income.   Steven also             
received surviving   spouse       retirement        income    of $15,000.     His deceased      wife’s date of  birth   was May 14,             
1954. Steven    receives   a   separate retirement          income     and treats   it as a       lump sum distribution  on the            
federal return,   resulting     in   the use of the   SC4972    and tax    reported    on line 7 of $200.                   

Sue received military      retirement      income        of $6,000   and other   retirement     income      of $16,000.   She also           
received surviving   spouse       military   retirement       income     of $24,000      from  her former    husband     whose date            
of birth was August   1,   1943.           

Together Steven     and Sue     had   taxable   social     security   of $16,600.              

Steven receives     interest    income     of   $1000 from    the state    of NJ that     was not included   in federal   taxable             
income. He   also   receives    interest   of $1,800       from US treasury   bonds.                 

Steven is     a shareholder in   an S Corporation.         He was  able  to take   a QBI deduction     of $75,000   on the                
federal return.   On the   South      Carolina  return,     he has   $300,000     of active   trade or business    income, which                 
results in   active trade  or   business income       tax of  $9,000.            

Steven and   Sue  made     contributions       to the   SC College    Investment       Program     of $33,000.   They also  paid            
$1,000 for   an annual contract       for  identity   theft   protection.             

During 2023,    they are   reporting       tax on excess    withdrawals       from a Catastrophe       Savings   Account    of $60.            

Steven and   Sue  both have     South      Carolina   earned       income  and qualify     for the maximum      two wage    earner               
credit.  

Steven and   Sue  purchased       solar    panels   qualifying     for the credit   on TC 38   for their‐  home in South               
Carolina. The   panels cost     $50,000.         

Steven had   $2,800  SC   withholding from          his 1099R.     Sue had    $400   SC   withholding      from the 1099R   she             
received as     a surviving spouse.           

The couple made     estimated         tax  payments       for 2023 of $28,000.      They also   made   a $4,000   extension               
payment in   April 2024.          

Steven and   Sue  want to   contribute $700         of their   overpayment          to the   checkoff  for the SC Department    of            
Archives and    History.        

They wish to   receive their    refund     by direct     deposit.             

#2 Test  Case       

John is     a full year‐ resident   of South   Carolina     for 2023    who   files as HOH   on   his federal   return.   He has one                  
dependent on         his federal    return.   His  dependent,         a daughter   Tracie,   was born      June 27, 2022   John’s              
federal taxable         income    is   $32,800       

John is     a full time  firefighter   and is eligible   for a subsistence      allowance      for 60 days. He serves      in the                      
National Guard          and  is able   to deduct   his nontaxable       pay of $4,500.    On his federal    return    he deducted                      
$640 of   travel expenses          related   to his National      Guard Service.     John also serves      as a volunteer  state                       
constable and        earned      the  required   240   service     time  hours  during   2023.                 

John was    allowed      an  EITC   on his federal     return    of $100.   He also  had  $2,000    of  expenses   that qualified                 
for the federal      credit   for  child  and dependent          care.        

He has SC   withholding from           a W2   of $385.             

John would         like for  his overpayment       to be   applied    as follows:   $60 to Use   Tax,   $100 to   2024    Estimated                    
Tax, and $102        by   paper check.          

#3 Test  Case       

 Sweet Shoppe,          LLC, an   S Corporation,     is filing   a composite    return   on behalf      of its nonresident               
shareholders. The            composite    return    is filed   using  the FEIN  of the   entity. The composite        return is             
reporting total      South    Carolina      taxable  income        of $98,070   and a  composite       tax liability  of $4,850.   The S            
Corporation had          tax withheld     per  1099s    of $2,500     and NR   sale  of  real   estate withholding    of $3,400.   The               
return is   requesting the        refund    be issued    by paper     check.           

#4 –   Test Case         

Eric       is a SC resident filing as married   filing  separately      for federal    purposes.    He has federal    taxable                  
income of   $136,200.             

Eric receives a    ‐  K 1 from a family   partnership       that conducts      all its business     in South   Carolina.                

He claims two        sons,   Daniel    and  David,  as dependents          on his federal  return.     Daniel’s date of birth  is             
October 17,        2005,     and David’s  date   of birth   is October     10, 2011.             

Eric was a   teacher for      part  of the   year, and had       $400   in Classroom     Teacher    Expenses    that qualify   for a               
South Carolina       credit.     Eric became     totally and      permanently      disabled    during   the year   and    received            
disability retirement         income      of   $21,000.          

Eric pays the      tuition   for  Daniel’s  college    education      and is  eligible   for a South      Carolina tuition tax credit of            
$1,500. Eric       is   also eligible for a $4,000   Parental      Refundable     Credit  on the I 361     for  ‐ David’s private              
school tuition.        

Eric has a   balance due      on his return.             

#5 –   Test Case       

Clara is       a SC resident filing an amended       return  to claim   the Preceptor       Credit. She    is an  advanced                 
practice registered        nurse.   At    her practice,   50%  of the   patients    are Medicaid      insured,‐ Medicare     insured,‐           
and self    pay.‐ She  served   6 rotations      as a preceptor.                  

Clara’s original      return    was filed  using the qualifying      surviving      spouse    filing status.  Her 12 year   old step‐  ‐        
granddaughter, Stacie,          is   her dependent.       Stacie’s   date   of birth   is June   30, 2011. Clara is over age   65 with            
her birthdate being        May  20,   1957.           

Clara timely  filed     her  original  return    with   a balance    due of    which   she has   only paid  $100.   Her original               
return reported        a   negative federal      taxable   income    of ($1,770).              

She itemized her        deductions      on  her  federal   return.   Clara’s     Schedule   A reported      itemized  deductions     of:          

            line   4 medical expenses      $1,800         
            line   5a state and local   income     taxes  $2,500              
            line 5b state   and local   real  estate   taxes  $6,875               
            line   5c state and local   personal     property    taxes  $625              
            line   8 home mortgage        interest    $8,600        
            line 11 gifts by   cash or check    $10,550            

for total   itemized    deductions       on line 17 of    $30,950.             

Clara received      a   1099G/INT from        SCDOR     in the   year 2023 reporting        a state   refund of $600.   This amount              
was in   Clara’s federal     taxable    income.            

Clara receives      retirement      income     of   $8,000.       

Clara has    a   rental home    in VA   with  income    of $13,000    and a rental        property   in NC with   a rental loss   of           
$145,000.   

She sold stock      that was    held  for ten years     with a gain   of $1,400.               

She     is a partner in       a SC partnership that operates     as a milk     dairy. She  receives   a K 1 reporting    ‐  $148,000             
of income    to   her. She   is eligible   for the refundable     Milk Credit       of $5,000   and the Anhydrous        Ammonia                
Credit of   $75.     

Clara is   paying a   $50 Penalty     for underpayment           of Estimated       Tax.          

The amended SC1040              has a balance    due   of $67.         

#6 –   Test Case        

Joseph files  his   federal     return   as Single   and claims   the standard        deduction.     He is under     age 65.             

He     is a nonresident of   South Carolina      who      earns  wages   for services      he performs     in South   Carolina.             

The only income        Joseph   receives      is from   a W 2    ‐  reporting SC wages   of $60,000.    The W 2 reports    ‐  $2,540             
of SC   tax withheld.           

Joseph is   requesting his      refund     by   direct deposit.