Form Sc Sch.tc-29 - Qualified Retirement Plan Contribution Credit

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STATE OF SOUTH CAROLINA
1350
1350
SC SCH.TC-29
DEPARTMENT OF REVENUE
(Rev. 6/14/10)
QUALIFIED RETIREMENT PLAN
3409
CONTRIBUTION CREDIT
20
Name As Shown On Tax Return
SSN
Please read the following before completing this form to determine if you are eligible to claim this credit.
The qualified retirement plan contribution credit is available only if a taxpayer lived in one or more other states that taxed
contributions into qualified retirement plans at the time they were made. The taxpayer must be vested in the other state's
retirement plan at the time of residing in the other state. Qualified retirement plans are retirement plans defined in I.R.C.
401, 403, 408 and 457, and all public employee retirement plans of the federal, state and local governments, including
military retirement.
The credit is claimed each year in an amount based on the taxpayer's life expectancy at the time the taxpayer first claims
the South Carolina retirement income deduction. The life expectancy table is available in Appendix C of Publication 590
available at
The total credit is limited to the amount of contributions taxed each year multiplied by 7% (South Carolina’s highest
marginal rate for individual income tax).
1. Total qualified retirement plan contributions taxed by another state. . . . . . . . . . . . . . . .
$
1.
2. Multiply line 1 by 7%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
2.
3. Total taxes paid to another state on contributions listed on line 1. . . . . . . . . . . . . . . . . .
3.
$
4. Enter the lesser of lines 2 and 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
$
5. Life expectancy from Appendix C of Publication 590 based on age at the time the SC
retirement deduction is first claimed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
years
6. Divide line 3 by line 5. (This is your annual credit.) Enter here and on the appropriate
line of SC1040TC, but the total credit may not exceed the amount on line 4. . . . . . . . .
6.
$
Example: John Doe moved into South Carolina. He resided in State Y for four years. State Y taxed his IRA contributions
for each of those years, even though they were exempt on his federal returns.
His W-2s for four years while a resident in State Y show the following amounts:
Tax
IRS
State Y
State Y
State Y
Year
Taxed
Taxed
Difference
Tax Rate
Tax Paid
1
$45,000
$49,000
$4,000
2%
$80
2
$48,000
$53,000
$5,000
2.2%
$110
3
$51,000
$57,000
$6,000
2.4%
$144
4
$54,000
$61,000
$7,000
2.6%
$182
Total:
$22,000
$516
Mr. Doe paid a total tax of $516 to State Y on his retirement contributions.
He is entitled to a credit based on his life expectancy at the time he first claims a retirement deduction. According to
Appendix C of Publication 590, the life expectancy of someone his age is 32.3 years.
The credit equals $516 (total tax paid to State Y) divided by 32.3 (life expectancy when he first claims the retirement
deduction), rounded off to the nearest whole dollar. The amount of his annual retirement contribution credit is $16.00.
1. Total qualified retirement plan contributions taxed by another state. . . . . . . . . . . . . . .
$
22,000
1.
2. Multiply line 1 by 7%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
1,540
2.
3. Total taxes paid to another state on contributions listed on line 1. . . . . . . . . . . . . . . . .
3.
$
516
4. Enter the lesser of lines 2 and 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
$
516
5. Life expectancy from Appendix C of Publication 590 based on age at the time the SC
retirement deduction is first claimed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
32.3 years
6. Divide line 3 by line 5. (This is your annual credit.) Enter here and on the appropriate
line of SC1040TC, but the total credit may not exceed the amount on line 4. . . . . . . .
6.
$
16
34091025

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