Form Sc4972 - Tax On Lump-Sum Distributions

Page 2

SC4972 (2015)

Part II

10-year tax option - CONTINUED

Multiply line 17 by 10% (.10).........................................................

22 Tax on amount on line 21. Use the Tax Rate Schedule below......

23 Multiply line 22 by (10).................................................................................................................

24 Subtract line 23 from line 20. (Multiple recipients, see federal instructions).................................

25 Tax on lump-sum distribution. Add line 2 and line 24. Also, enter this amount on

SC1040, line 7; or SC1041, line 9, whichever applies ...........................................................

Instructions:

South Carolina provisions for lump sum distributions are the same as the federal provisions. If you used federal Form 4972

for a lump sum distribution, you must use the South Carolina SC4972 to compute the South Carolina tax.

Line 4 Retirement Deduction:

An individual may deduct up to $3,000 of qualified retirement income, and, beginning in the tax year in which the individual

reaches age 65, up to $10,000 of qualified retirement income.

A surviving spouse receiving qualified retirement income attributable to a deceased spouse may deduct up to $3,000 or

$10,000, whichever would have applied, based on age, had the deceased spouse lived. The surviving spouse retirement

deduction is in addition to the individual retirement deduction from his or her own plan.

The retirement deduction can be claimed here to the extent it is not claimed on SC1040 or Schedule NR. If an

age-65-and-older deduction has been claimed on SC1040 or Schedule NR, do not include any individual retirement

deduction on line 4.

See SC1040 instructions for additional information.

Line 5 Age-65-and-older deduction:

Beginning in the tax year in which a resident reaches age 65, a deduction of $15,000 can be claimed against any South

Carolina income. However, it is reduced by the amount of any individual retirement deduction. The age-65-and-older

deduction is not reduced by any surviving spouse retirement deduction.

The age 65-and-older deduction can be claimed on line 5 to the extent it is not claimed on SC1040 or Schedule NR.

See SC1040 instructions for additional information.

2015 SOUTH CAROLINA TAX RATE SCHEDULE FOR LINES 19 AND 22 ONLY

If the amount

But not

Compute the tax as follows:

is Over--

Over--

-0-

$ 2,910

$ 2,910 -

5,820

3% less $87

5,820 -

8,730

4% less $145

8,730 -

11,640

5% less $233

11,640 -

14,550

6% less $349

14,550 +

or more

7% less $495

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.

31072028

Form Sc4972 - Tax On Lump-Sum Distributions - 2015 Page 2

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