Fillable Form Sc1041 - Fiduciary Income Tax Return

Line 3 - Modifications Related to Principal or Non-Distributable Income: Some of the modifications described in Part I may apply to

gains allocated to principal or to other items not affecting federal distributable income. For example, gain (or loss) from sale of real estate

located outside of South Carolina is not taxable to South Carolina. A Line 3 modification is required if property sold has a different basis for

South Carolina income tax purposes than it does for federal income tax purposes. An individual, trust or estate may claim a deduction of 44%

of net capital gain (the excess of the net long-term capital gain over net short-term capital loss, and reduced by any carryover losses), but the

deduction is computed at the beneficiary level except for capital gains taxable to the trust or estate. If any of these or similar modifications

apply, attach a schedule listing the adjustments.

Line 4 - South Carolina Fiduciary Adjustment: No adjustment is to be made on this line by a nonresident estate or trust. A resident

fiduciary should enter on line 4 it's portion of the fiduciary adjustment from line 1, column 4, Part II, and page 2. (See instruction for "Part II -

Allocation of South Carolina Fiduciary Adjustment.")

Line 5 - Net: Combine amounts on lines 1, 2, 3, and 4. Enter the results on line 5.

Line 6 - South Carolina Fiduciary Exemption: Enter on line 6 the South Carolina fiduciary exemption. The South Carolina fiduciary

exemption for a resident estate or trust is the same amount of exemption allowable for federal income tax purposes. Nonresident estates or

trusts should complete Part V (see instructions for "Part V - Nonresident Exemption Allowance of Fiduciary") to determine the portion of the

federal fiduciary exemption which is allowed as the South Carolina fiduciary exemption.

Line 7 - South Carolina Taxable Income: Subtract line 6 from line 5 and enter balance on line 7. This is the amount upon which the tax is

to be computed.

Line 8 - South Carolina Tax: To determine the amount of the fiduciary income tax liability, refer to this tax computation schedule, and

compute the tax. Enter the amount on line 8, page 1.

EXAMPLE OF COMPUTATION:

2015 TAX COMPUTATION SCHEDULE

ESTATES AND TRUSTS TAX RATE

South Carolina taxable income on SC1041 line 7 is $15,240.

If the income is:

Compute your tax as follows and enter

$15,240 income from line 7

the results on SC1041 line 8.

.07 percent from tax computation schedule

1,067 (1,066.80 rounded to the nearest whole dollar)

OVER -

BUT NOT

COMPUTATION

OVER -

495 subtract amount from tax computation schedule

-0-

$ 2,910

572

$ 2,910

5,820

3% less $87

5,820

8,730

4% less $145

8,730

11,640

5% less $233

$572 is the amount of tax to be entered on SC1041, Line 8.

11,640

14,550

6% less $349

14,550

or more

7% less $495

Line 9 - South Carolina Tax on Lump Sum Distributions and/or on Active Trade or Business Income: If a resident estate or trust

received a lump sum distribution and is taxed according to IRC Section 402(e), the resident estate or trust is also subject to a South Carolina

tax on the lump sum distribution. Complete SC4972 and attach to the return. If filing I-335, attach and include the amount of tax from line 7.

Line 10 - Non-refundable Credits: Enter non-refundable credits from SC1040TC. Be sure to attach the appropriate credit form. The credit

may not exceed the sum of the tax on lines 8 and 9.

Line 11 - Net Tax: Add lines 8 and 9 less amount on line 10. If a credit is claimed on line 10, the balance cannot be less than zero.

Line 12 - South Carolina Tax withheld for Nonresident Beneficiaries: Estates and trusts are required to withhold taxes at a rate of 7% on

each nonresident beneficiary's share of income from South Carolina sources. For information on income from South Carolina sources see “A.

FILING REQUIREMENTS” on page 1 of the instructions. Enter the withheld amount from each nonresident beneficiary in column F, Part IV,

page 3. Prepare an SC41 Fiduciary Report on Nonresident Beneficiary Tax Withheld for each nonresident beneficiary from whom an amount

is withheld. A copy of this report must be forwarded to the beneficiary for whom the tax is withheld so that the beneficiary may attach it to

his/her South Carolina income tax return.

Note: A trust or estate is not required to withhold taxes from South Carolina taxable income of a nonresident beneficiary who submits an I-41

Affidavit and Agreement to file returns and pay applicable taxes. The trust or estate must remit all I-41 Affidavits to the South Carolina

Department of Revenue. I-41 Affidavits should be attached to SC1041 or SC8736 (Request for Extension of Time to File South Carolina Tax

Return) on or before the fifteenth day of the fourth month following the close of the trust or estate's tax year.

Line 14 - Amount Paid with Request For Extension and SC Withholding: Enter amounts paid with "Request for Extension ". If you are

claiming credit for tax withholding, be sure to attach copies of W-2's or 1099's. Explain any amounts entered on line 14.

Line 15 - Estimated Payments (and amounts applied from prior year return): Enter the total SC1041ES estimated tax payments made

before filing your South Carolina Tax Return, plus any amounts transferred from your prior year tax return.

Line 16 - Reduce the amount on this line by any estimated income tax assigned to beneficiaries. Write the assigned amount on the dotted

line portion of this line.

Form Sc1041 - Fiduciary Income Tax Return - 2015 Page 6

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