File South Carolina Income Taxes
South Carolina income taxes are collected based on a six-tier bracket with the first $2880 of earned income remaining untaxed. The top rate is 7%, which is applied on incomes exceeding $14,401. At these rates, Palmetto State ranks 12th highest among all states that collect state taxes on individual incomes.
Residents who file federal tax returns will need to file SC tax returns. Part year residents, referring to those who may have moved during the tax year, may elect to file as full-time residents using Form SC 1040. Use SC 1040-TC to receive tax credits for taxes paid to other states.
Nonresidents should attach Schedule NR to the Form 1040. Nonresident SC tax filers should include anyone who derived income from the lease or rental of properties located in South Carolina.
State tax returns, using Form SC 1040, are prepared after federal tax returns are filed. Additional forms and schedules will depend on the tax filer's status. The deadline for filing the forms and paying the tax due is April 15 although an automatic extension can be obtained by submitting Form SC 4868 to extend the due date for the returns to October 15. For those who have already obtained a tax extension for filing their federal returns, a copy of the federal extension attached to the South Carolina tax returns when submitted will suffice. Any taxes due will be deemed late after the original deadline and may be subject to penalties.
Amendments should be filed using SC 1040X to correct tax records when errors in income, deductions or credits are recorded. An amended tax return is also necessary if an IRS audit caused significant changes in your federal returns.
A significant feature of the SC tax code is the exclusion of Social Security benefits or income from railroad retirement plans from state taxes. Special exemptions of retirees and seniors include am annual deduction of up to $3,000 for income received from qualified retirement plans drawn before the age of 65. This deduction is raised to $15,000 after the age of 65, and it covers all income sources at this point.
The Revenue Department encourages e-filing state taxes for quicker processing of SC tax refunds, which may take 10 days while paper returns take at least three weeks. To check the status of your refund, submit the required information at https://www3.sctax.org/refundstatus/refund.aspx or call the Revenue Department at 803-898-5300 or 803-898-5000.
Department of Revenue's ePAY System
This online system allows the taxpayer to make payments for certain SC taxes including Estimated Quarterly Taxes. For more information about where to pay go to the Department of Revenue's website and search for DOREPAY.
A 5% penalty is assessed on South Carolina tax returns filed after the original deadline and will continue to be assessed every month that returns and tax dues are not paid. With a filing extension, a ½% penalty is levied on tax dues that are not paid by the original due date with maximum penalties capped at 25% in both cases.
Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.