Form Sc1040tc Worksheet Instructions - Credit For Taxes Paid To Another State - South Carolina Department Of Revenue
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3SC1040TC WORKSHEET INSTRUCTIONS
CREDIT FOR TAXES PAID TO ANOTHER STATE
(Rev. 8/17/16)
This Worksheet provides a summary of the credit for taxes paid to another state. Complete the other state return
first. You must have filed a return with another state in order to claim this credit.
The credit is available to a South Carolina resident or a part-year
your pay, but rather to the tax computed on the other state's
resident if state income taxes are paid to South Carolina and
return (the amount the other state did not refund to you).
another state on the same income. The credit is computed only
A copy of the federal return and the other state's tax return(s)
on income that is required to be taxed in both states.
must be filed with the Department at the time the credit is
You may claim the credit on your South Carolina return only if you
claimed. Complete a separate SC1040TC Worksheet for each
state. Attach SC1040TC and SC1040TC Worksheet to the
actually filed a return with the other state and had a tax liability to
SC1040.
the other state. Tax liability does not refer to the tax withheld from
Attach an explanation if you are claiming a tax credit on
Example 1: Mr. R is a resident of South Carolina who works in
Schedule NR. In order to claim a tax credit, you must have
another state. The other state's return shows wages of $20,000.
been a South Carolina resident at some time during the tax
No other income sources appear on the other state's return.
year.
Line 2 would be $20,000 as that gross amount (before deductions
and exemptions) was included in line 1 and is being taxed by
LINE 1
SC1040 filers:
another state.
On line 1 you must account for state and federal differences to
determine total South Carolina income. Total federal income must
Example 2. Same as example 1 except Mr. R's other state's return
be adjusted by applicable additions and subtractions.
also shows $10,000 in rental income from a property located in
Complete the following worksheet:
the other state. Line 2 would reflect $20,000 as the $10,000 rental
income located in the other state is not taxed by South Carolina.
Total income from federal form received
while a resident of South Carolina. . . . . . . . A. ____________
Remember: You are determining the gross amount of income
Add amounts from SC1040, line b and d
being taxed by both South Carolina and another state.
and enter here. . . . . . . . . . . . . . . . . . . . . . . B. ____________
Add lines A and B . . . . . . . . . . . . . . . . . . . . . C. ____________
LINE 6
Add amounts from SC1040, lines f - j,
Line 6 should reflect only the portion of the tax paid to the other
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m - q and s. Enter here. . . . . . . . . . . . . . D. ____________
state which is attributable to the income which is being taxed by
Subtract line D from line C. Enter on line 1,
both states. Do not use withholding amounts shown on your
SC1040TC Worksheet. . . . . . . . . . . . . . . . E. ____________
W-2 forms.
Line e (other additions) and v (other subtractions) are used rarely.
Example: Mr. M's other state's return shows $5,000 in wages,
Items entered on these lines must be considered individually to
$7,000 in rental income from the other state, and $8,000 from the
determine whether line 1 of SC1040TC Worksheet is affected.
sale of a house located in the other state. The other state's total
tax liability is $546. Since only the $5,000 in wages is subject to
Example: Mr. B's total income from his federal form is $36,000.
tax in both states, line 6 would be computed as follows:
South Carolina adjustments are as follows: State refund $300;
out-of-state loss on rental property $4,500; and interest from U.S.
$ 5,000
X
$546 = $137
Bond $200. In this example, the amount to enter on line 1 of
$20,000
SC1040TC Worksheet is $40,000 ($36,000 plus $4,500 minus
$300 minus $200).
The credit is limited to the South Carolina tax or the other state's
.
tax on the income being taxed by both states, whichever is less
SC Schedule NR filers:
For line 1 use the amount from line 16, Column B plus line 42,
Total line 7 from all worksheets and enter total on SC1040TC, line
Column B.
1.
LINE 2
NOTE: If you are allowed this credit for taxes paid another state,
Line 2 should reflect the gross amount of income which was
and that state later refunds or credits part of the tax which
included in line 1 and was also taxed by another state.
generated the credit, you must repay the South Carolina
Department of Revenue within 60 days from the date of receipt of
the refund or notice of the credit, by filing an SC1040X (Amended
Return).
Social Security Privacy Act Disclosure
It is mandatory that you provide your social security number on this tax form. 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 SC Department of Revenue shall provide identifying numbers, as prescribed, for securing
proper identification. Your social security number is used for identification purposes.
34342022
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