1350                                          STATE OF SOUTH CAROLINA 
                                                  DEPARTMENT OF REVENUE                                    I-338 
                                                                                                           (Rev. 8/12/19) 
                                                  COMPOSITE RETURN                                         3418
   dor.sc.gov                                     AFFIDAVIT                                                20 
I certify and agree to the following:

1. I am a nonresident partner of a Partnership, shareholder of an S Corporation, or member of a Limited Liability  
   Company (LLC). 
    
2. My name is: 
    
   My address is: 
                                                  Street address
    
                                                  City, state, and ZIP
    
3. My Social Security Number (SSN) or Federal Identification Number (FEIN) is: 
    
4. The income this affidavit and agreement applies to is: 
    
                       Distributed or undistributed South Carolina income from a Partnership. 
    
                       Distributed or undistributed South Carolina income from an S Corporation. 
    
                       Distributed or undistributed South Carolina income from a Limited Liability Company 
           taxed as a Partnership. 
    
           Distributed or undistributed South Carolina income from a Limited Liability Company 
                       taxed as an S Corporation. 
    
5. Entity's name: 
    
   Entity's address: 
                                                  Street address
    
                                                  City, state, and ZIP
   Entity's FEIN: 
    
6. I have no source of income taxable to South Carolina other than from the entity named above. 
    
7. This affidavit applies for the year January 1 - December 31, _______________ , or for the fiscal tax year 
    
   beginning ________________________________ and ending ________________________________ . 
    
I declare under penalty of perjury that I have examined this affidavit and that, to the best of my knowledge and belief, it is true, 
correct, and complete. 
Under SC Code Section 12-54-44(B)(6)(a), a person who willfully makes and subscribes any return, statement, or other 
document that contains, or is verified by, a written declaration made under penalties of perjury that they do not believe to be true 
and correct as to every material matter is guilty of a felony and, upon conviction, must be fined not more than $500 or 
imprisoned not more than five years, or both, together with the cost of prosecution.

Signature of partner, shareholder, or member                                                  Date

Print name of partner, shareholder, or member

    34181024

                                        INSTRUCTIONS

Option to File Composite Returns 
 
A composite return is a single return filed by a Partnership, S Corporation, or LLC taxed as a Partnership or S Corporation 
on behalf of two or more nonresident participants. 
 
 • Participants are limited to individuals, trusts, or estates who are partners of the Partnership, shareholders of the S 
  Corporation, or members of an LLC taxed as a Partnership or S Corporation. 
 • The composite return includes income received by the participant from the Partnership, S Corporation, or LLC. 
 • Each participant’s tax is determined separately and added together to arrive at the total tax due on the composite 
  return. 
 • The composite return must be signed by an authorized partner of the Partnership, an officer of the S Corporation, 
  or a member of the LLC. 
 • Determine the participant's South Carolina Income Tax as if it were being separately reported. 
 
Determining Tax Due 
 
Determine each participant's tax due using one of the following methods:  
 
Method A. The participant provides an affidavit to the SCDOR through the entity stating that he has no income taxable to 
South Carolina other than the income from the entity. 
 
 Option 1: 
 • Prorate the standard deduction or itemized deductions and personal exemptions. 
   • For an individual, multiply the standard or itemized deductions and personal exemptions by the South 
          Carolina adjusted gross income, and divide the result by the federal adjusted gross income. 
   • For an estate or trust, multiply the standard or itemized deductions and personal exemptions by the South 
          Carolina gross income, and divide the result by the federal adjusted gross income. 
 • If the participant chooses, tax active trade or business income at the active trade or business income rate.  
 • Tax all other taxable income using the graduated rate for individuals, estates, and trusts. 
  
 Option 2: 
 • Do not use the standard deduction, itemized deductions, or personal exemptions. 
 • If the participant chooses, tax active trade or business income at the active trade or business income rate. 
 • Tax all other taxable income using the graduated rate for individuals, estates, and trusts.  
  
Method B. The participant does not provide an affidavit to the SCDOR through the entity stating that he has no income 
taxable to South Carolina other than the income from the entity. 
 
 • Do not use the standard deduction, itemized deductions, or personal exemptions. 
 • Tax active trade or business income at the active trade or business income rate. The “safe harbor” is not 
  available under Method B. 
 • Tax all other taxable income at 7%. 

  34182022

Purpose of the I-338 Composite Return Affidavit  
If the participant completes the I-338, the Partnership, S Corporation, or LLC can use either Option 1 or 2 under Method 
A. Without an I-338, the Partnership, S Corporation, or LLC is limited to Method B, and the“safe harbor” is not available 
for computing active trade or business income. 
 
Who May Use the I-338 Affidavit 
Any individual, trust, or estate who is a nonresident partner of a Partnership, shareholder of an S Corporation, or member 
of an LLC taxed as a Partnership or S Corporation who has no source of income taxable to South Carolina other than 
from the entity, may complete the I-338. The affidavit should be completed and signed by the participant or by an agent 
acting on the participant’s behalf. 
 
Where and When to Submit the I-338 Affidavit 
Partners, Shareholders, and Members: 
A qualifying participant should submit the fully completed I-338 directly to the Partnership, S Corporation, or LLC. 
Do not mail to the SCDOR. 
The I-338 is not valid for subsequent years and must be resubmitted to the entity each year. 
Partnerships, S Corporations, and LLCs: 
The Partnership, S Corporation or LLC must provide all I-338 affidavits to the SCDOR along with the composite return 
(SC1040 South Carolina Individual Income Tax Return). 
For more information, see SC Revenue Procedure #17-2 at dor.sc.gov/policy.

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. 

   34183020