Moving To South Carolina - A Tax Guide For New Residents (Page 2 of 4) in pdf

Estimated Tax

A two-wage earner credit allows married couples

to take a maximum credit of $210 if both spouses

Estimated tax is the method you use to pay tax on

work.

income that is not subject to withholding. This

includes income from self-employment, interest,

You are allowed a maximum credit of $300 for

dividends, alimony, rent, capital gains and prizes.

payments made for nursing home care or

You also may have to pay estimated tax if enough tax

intermediate nursing care provided in the home for

is not being withheld from your salary, pension or

yourself or another individual.

other income. Estimated tax is paid in quarterly

installments on April 15, June 15, September 15 and

A credit is allowed for income taxes paid to

January 15.

another state on income which is taxable in both

states.

Filing Returns

A child and dependent care credit allows you to

Generally, you are required to file a South Carolina

claim 7% of your federal allowable expenses for

income tax return if you are required to file a federal

the care of a child or elderly person.

return or if you have South Carolina tax withheld from

your wages. Individual income tax returns are due

Additions to Income

April 15 of each year, but if you file your state return

electronically, you have until May 1 to file without

Certain items of income must be added back to

incurring a penalty. The May 1 deadline does not

your federal taxable income for South Carolina

apply to federal income tax returns.

purposes.

You may file your South Carolina tax return in several

Any out-of-state losses and interest income from

ways:

obligations other than those in South Carolina, if

these items were subtracted on your federal return,

Electronic

filing

using

professional

tax

must be added back to your taxable income on the

preparer

state return.

On-line filing over the Internet using available

commercial software

The deduction on your federal return for state

SCNetFile using the DOR website

income tax paid must be added back to your

Paper returns.

taxable income on your state income tax return,

but it is offset by your state refund amount if you

Property Tax

claimed it as income on your federal return.

Counties, cities and school districts are authorized to

Tax Rates

impose ad valorem taxes on real and personal

property. The local government assesses and

Individual income tax rates range from 2.5% to a top

collects the property tax under the direction and

rate of 7% on taxable income. Tax brackets are adjusted

assistance of the Department of Revenue. Property

annually for inflation.

tax dollars support public schools and the services

local governments provide.

Part-Year Residents

Residential Property

If you moved into South Carolina during the year, you

are a part-year resident. As a part-year resident, you

The market value of a legal residence and up to five

may consider yourself a full-year resident or a

acres of surrounding land is assessed at 4% of fair

nonresident. If you choose to be a full-year resident, you

market value. The millage rate of the local

claim all your income as though you were a resident for

government is then applied to the assessed value

the entire year and take a credit for taxes you paid in

resulting in the tax liability. The millage rate is set by

another state. If you choose to be a nonresident, report

local governments and varies widely throughout the

only the income you earned in South Carolina. Your

state.

deductions and exemptions will be prorated by the same

percentage as your South Carolina income compares to

The first $100,000 in fair market value of a primary

your total income. You may choose the method which

residence is exempt from school operating taxes.

benefits you best. You may need to complete the return

both ways to determine which is best.

Moving To South Carolina - A Tax Guide For New Residents Page 2

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