Income Tax Return Instructions - State Of South Carolina (Page 2 of 14) in pdf

If you need additional time to file, you may use your additional

need to amend your state return. You may apply for a refund on either an

approved federal extension or make a separate request to the

amended or delinquent return for any tax period which is open under the

statute of limitations. A refund will not be issued for requests received

Department.

beyond the limitation period. The limitation period for filing claims for

Be sure to enter any South Carolina payments paid on an extension

refund is three years from the time the timely filed return, including

request on form SC1040, line 17, or SC1040NR, line 12.

extensions, was filed or two years from the date of payment whichever is

later. If the original return was not timely filed, claims for refund must be

Be sure to attach a copy of the extension to the back of your South

filed within two years from the date of payment.

Carolina return when you file. Also write: "EXTENSION" in bold letters in

the upper right hand corner of the income tax return.

MORE TIME TO FILE DOES NOT MEAN MORE TIME TO PAY YOUR

REFUND SETOFFS

TAXES!

The South Carolina Department of Revenue assists other State agencies,

You will owe interest from April 17, 2000 to date of payment. A penalty

institutions of higher learning, political subdivisions of the state, and the

may also be charged after April 17th if an additional payment is required.

Internal Revenue Service in the collection of overdue accounts. All or part

To avoid the penalty, you must: 1) pay at least 90 percent of the tax by

of your refund can be sent directly to these "claimant" agencies if they

April 17, 2000, and 2) pay the additional balance, if any, within the

notify the Department that you have a past due account with them.

extended time period. In the case of a failure to file within 60 days of the

due date, the penalty will be a minimum of $100 or the amount of the tax

The South Carolina Department of Revenue charges the taxpayer a

due, whichever is less if the tax owed is greater than $100.

$25.00 administrative fee to complete a refund "setoff". If any of your

refund is sent to a claimant agency, the Department will notify you in

FRAUDULENT RETURN

writing. If your refund exceeds the amount owed the claimant agency plus

Any person who deliberately fails to file a return, files a fraudulent return

the administrative fee, the balance will be mailed to you.

or attempts to evade the tax in any manner may be liable for a penalty up

to $10,000 or imprisoned for not more than five years or both.

If you believe you do not owe the debt, the amount sent was

incorrect, or the debt has already been paid, you must contact the

I AM GETTING AN INCOME TAX REFUND THIS YEAR. WHEN WILL I

claimant agency.

GET MY CHECK?

Returns which are filed early are processed before and usually more

WHO MUST FILE A DECLARATION OF ESTIMATED TAX?

quickly than returns filed closer to April 17th. Ordinarily, within twelve

Generally, you must file a Declaration of Estimated Tax, Form SC1040ES,

weeks after we receive your complete return we will mail your refund

for the year 2000 if you estimate that your tax will be $1000 or more and

check. Therefore, allow at least twelve weeks for your refund to arrive

the total amount of income tax that will be withheld will be less than the

before you contact us. See Tax Helpline, page 28.

lesser of:

1. 90 percent of the tax to be shown on your 2000 income tax

DECEASED TAXPAYERS

return,

If a person received income in 1999 but died before filing a return, the

South Carolina income tax return should be filed by the surviving spouse,

2. 100 percent of the tax shown on your 1999 income tax return (if

executor or administrator. Use the same filing status that was used on the

final Federal income tax return. Print "Deceased" and the date of death

your 1999 return covered all 12 months of the year) However, if

beside the decedent's name. The due date for filing is the same as for

your adjusted gross income is $150,000 or more, the 100% rule is

Federal purposes. In the area where you sign the return write "Filing as a

modified to be 105% of the tax shown on your 1999 income tax

surviving spouse", if appropriate. A personal representative filing the

return.

return must sign in his or her official capacity. Any refund check will be

Wage earners who do not have enough tax withheld from their wages

issued to the decedent's surviving spouse or estate. Form 1310 must be

must file a Declaration of Estimated Tax for the year. You have two

attached to the tax return.

methods for paying: 1) increase the amount your employer withholds from

your wages, or 2) pay estimated tax in addition to the usual amount

ROUND OFF CENTS TO THE NEAREST WHOLE DOLLAR.

withheld from your wages.

You must round off cents to the nearest whole dollar on your return and

schedules. You must drop amounts less than 50 cents. Increase amounts

Taxpayers earning personal service income in another state on which

of 50 to 99 cents to the next dollar. For example: $2.15 becomes $2.00;

tax withholding was due to the other state and was withheld can be

$4.75 becomes $5.00; and $3.50 becomes $4.00.

relieved of declaration penalty. Self-employed people who do not have

South Carolina tax withheld from their income must file a Declaration of

WHAT TAX RECORDS DO I NEED TO KEEP?

Estimated Tax for the year. Recipients of taxable pension and

Keep a copy of your return. Also, keep the original or a copy of any

annuities who do not have at least 90 percent of their South Carolina

schedules or statements used to prepare your return. Keep your records

income tax liability withheld must file a Declaration of Estimated Tax for

that support an item of income or a deduction appearing on a tax return

the year.

until the statute of limitations for the return runs out. The statute of

limitations is generally THREE YEARS from the date the return was filed

WHO DOES NOT HAVE TO FILE A DECLARATION OF ESTIMATED

or due to be filed, whichever is later.

TAX?

Farmers and commercial fishermen do not have to file a declaration if

Save any records concerning property, home, stocks, and business

at least two thirds of their gross income is from farming or fishing, but

property you bought and may sell later. The records kept should show the

must file their return and pay all taxes due by March 1.

purchase price, date and related cost, and for real property, cost and date

of improvements. Your return may be audited by the IRS or the South

HOW DO I FILE ESTIMATED TAX?

Carolina Department of Revenue. If audited, the law requires you to show

Complete a South Carolina Declaration of Estimated Tax form (Form

proof of your income, expenses, and cost of assets.

SC1040ES). The South Carolina Department of Revenue mails

declaration vouchers to taxpayers who may need to pay estimated tax,

WHAT IF I AM AUDITED BY THE IRS?

based on past estimates. If you need to file but did not get your vouchers,

If you receive a refund or owe additional federal tax, file an amended

contact the SC Department of Revenue.

South Carolina return after the federal audit report becomes final.

MOVING?

WHEN SHOULD I FILE AN AMENDED SOUTH CAROLINA RETURN?

Let us know your new address. Write to: South Carolina Department of

File Form SC1040X (Amended Return) any time you need to correct your

Revenue, Address Correction, Columbia, South Carolina 29214-0015.

South Carolina return. If you amend your federal return, generally you will

Income Tax Return Instructions - State Of South Carolina Page 2

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