The 1099-G/INT is a statement showing the amount of refund, credit, or interest issued to you in a calendar year. It is not a bill, a check, or an additional refund. It does not mean you owe the state any additional tax. Any amounts shown as refunds have already been issued to you.

The amount shown on the 1099-G/INT includes any portion that was refunded, applied to any outstanding debt, transferred to estimated tax, sent to any of the contribution check-off funds, or used to pay Use Tax. If you itemized state Income Taxes paid as a deduction on Schedule A of your federal Individual Income Tax return, you must claim the total on your federal 1040 for the IRS. If you claimed the standard deduction on your federal Individual Income Tax return, you do not need to report this amount as income.

South Carolina does not tax any state Income Tax refund included in federal gross income. Subtract state refunds included in federal gross income on line f of the SC1040. Interest received from the SCDOR is included in federal and state taxable income.

Keep the 1099-G/INT with your tax records for information purposes only.

See SC Code Section 12-6-1120(2)

Yes. If you would rather receive your 1099-G/INT online instead of by mail, you can access it on our free online tax portal, MyDORWAY.

The 1099-G/INT can be accessed online using MyDORWAY. You must elect to receive your 1099-G/INT online.

1. Log in to your MyDORWAY account.
2. If you do not have a MyDORWAY account, visit dor.sc.gov/MyDORWAY-signup to create an account.
3. Change your delivery preference.
4. Select the More tab
5. On the next screen, click View Letters
6. If you don't see your 1099G/INT right away, enter 1099 in the Filter bar.

Once you choose the online delivery options, you will continue to receive your 1099-G/INT exclusively through MyDORWAY unless you update your delivery preference.

If the refund was for a tax you paid and you deducted state and local Income Taxes on your federal Schedule A, use the State and Local Income Tax Refund Worksheet in the federal 1040 instructions to determine if any of your refund is taxable. For tax year 2024, enter the taxable amount on Schedule 1, line 1 of the federal 1040. For South Carolina purposes, subtract this amount on line f of the SC1040. 

Contact the IRS or your tax professional for guidance.

The SCDOR is required to provide the form by the end of January.

This amount is considered taxable income and should be reported on your federal and state Income Tax return.

No. Report the amount shown on the 1099-G/INT on the state tax refund line of your federal return. Any money paid on an amended return would be reported as an itemized deduction on the federal Schedule A in the year paid.

Yes. You will receive one 1099-G/INT that reflects the total for refunds issued during the calendar year.

The 1099-G/INT reflects the full overpayment for the year, which may include a portion of the overpayment that was applied to any of the following:

• Any outstanding debt (The SCDOR sent you a Notice of Refund Adjustment concerning this offset)
• Any amounts transferred to Estimated Tax, as requested on your return
• Any amounts sent to any of the contribution check-off funds, as requested on your return
• Any amounts applied to Use Tax, as requested on your return

South Carolina conforms with the Internal Revenue Code as amended through December 31, 2023, except as otherwise provided. If Internal Revenue Code sections adopted by South Carolina which expired on December 31, 2023, are extended, but otherwise not amended, by congressional enactment during 2024, these sections are also extended for South Carolina Income Tax purposes in the same manner that they are extended for federal Income Tax purposes.

The state’s adoption of the Internal Revenue Code is not all inclusive. SC Code Section 12-6-50 includes the Internal Revenue Code sections not adopted by South Carolina. You may need to make adjustments on your return for items not adopted by South Carolina. See the SC1040 instructions, the Schedule NR instructions, or SC Information Letter #24-16​ for mor​​e information.

It is useful to the SCDOR if you enter the code number of the county in which you are a resident. There is also a code number to enter if you reside outside South Carolina (No. 99) or the United States (No. 88).

Refer to SC1040 instructions for a complete listing.

For tax years 2021 and newer, viewing and printing transcripts of filed ​Individual Income Tax returns is easy on MyDORWAY​:

• ​Log in​ and click the Accounts tab.
• Scroll to your Individual Income Tax account and select View Returns and Periods.
• Under Period, select any period starting with tax year 2021 or newer (example: for tax year 2021 you would select period 31-Dec-2021)
• On the next screen, select Print Return Transcript, then download your transcript as a PDF.

For tax years 2020 and older, you must request transcripts by completing the SC4506​ and emailing it to RequestforCopies@dor.sc.gov.

If you used a paid preparer to file your return, your preparer should have a copy of your return.

South Carolina has adopted the joint return relief provisions in Internal Revenue Code Section 6015. This means that in some cases, a spouse may be relieved of responsibility for paying tax, interest, and penalties on a joint return.

Complete the SC8857 to request consideration for innocent spouse relief.

See SC Code Section 12-6-50(16)​ and Internal Revenue Code Section 6015.

Yes. The SCDOR encourages individuals to file their Income Tax returns on time and pay as much as possible when filing returns, since penalties and interest will be assessed on unpaid balances. Include your Social Security Number on your payment.

Visit our payment plan page to learn about applying for a payment plan agreement.

Yes. Payments can be made on MyDORWAY by credit card (VISA, Mastercard, American Express, or Discover) or ACH debit.

An amended return is necessary if you overstated or understated your income, deductions, payments, or tax credits, or changed your filing status. You should also file an amended return if you were audited by the IRS (unless the IRS audit had no impact on your state return). By filing an amended return, you are correcting your tax records. Your amended return may result in either a refund or additional tax. You must pay any additional tax with the amended return.

If you need to amend your return, file a new SC1040 and check the Amended Return box on the front. Complete the return as it should have been filed, including all schedules and attachments. Complete the SCH AMD, Amended Return Schedule and submit it with your amended SC1040.

Starting with tax year 2019, amended returns can be filed electronically. Check with your tax preparer or tax software provider to determine if they support electronic filing of amended returns.

A composite return is a single return filed by a partnership, S Corporation, or Limited Liability Company (LLC) taxed as a partnership or S Corporation on behalf of two or more nonresident individuals, trusts or estates who are partners of the partnership, shareholders of the S Corporation or members of the LLC. A composite return allows S Corporations or partnerships to compute and report the South Carolina income and tax attributable to electing nonresident shareholders or partners on a single tax return.

A composite return is filed using an SC1040 South Carolina Individual Income Tax Return. The heading states the name, address, and FEIN of the partnership, S Corporation or LLC. There is no need to use "Composite Return for" or "Shareholders/Partners of" in the name. Mark the box for filing a composite return. Mark "Single" filing status.

A Partnership, S Corporation, or LLC taxed as a partnership or S Corporation determines the tax separately on each participant's share of income. The methods available for computing the tax depend on whether the partner, shareholder, or member has filed an I-338 Composite Return Affidavit with the SCDOR through the partnership, S Corporation, or LLC. An I-338 affidavit states that the partner, shareholder, or member has no other income taxable to South Carolina. The tax amounts computed for each participant in the composite return are added together to arrive at the total tax due.  

Refer to the Composite Return Affidavit I-338 and the Composite Filing Instructions I-348 for more information.

See SC Code Section 12-6-5030 and SC Revenue Procedure 17-2.

The fastest, easiest way to request an extension to file is by paying your balance due on our free online tax portal, MyDORWAY, at dor.sc.gov/pay. Select Individual Income Tax Payment to get started. Your payment on MyDORWAY automatically submits your filing extension request. No additional form or paperwork is required. 

You can also file the ​SC4868 to extend the time to file a composite return. Do not use the SC1120T or the federal form 7004. Extending the time to file a composite return does not extend the time to file the South Carolina S corporation (SC1120S) or partnership (SC1065) return.

If filing the SC4868 by paper, mark the Composite Filer box and mail the original with payment, if any.

Any tax estimated to be due must be paid with the timely filed extension.

For more information, see SC Revenue Procedure 17-2.

Individuals are allowed a deduction from South Carolina taxable income equal to 44% of the net capital gain recognized in South Carolina. "Net capital gain" means the excess of the net long-term capital gain from the sale or exchange of a capital asset held for more than one year over the net short-term capital loss of capital assets held for one year or less. South Carolina capital gains holding period is the same as the federal holding period.

Refer to the SC1040 instructions for more information.

Individuals are allowed a 44% deduction for recognized net capital gains that have a holding period of more than one year. The holding period for investments in a mutual fund is the time the mutual fund held the investment; it is not how long the individual taxpayer held their shares in the mutual fund. Information should be provided by the mutual fund provider.

Interest income from US obligations (such as US savings bonds, treasury notes and bills, etc.) and interest income from South Carolina obligations is not taxable in South Carolina.

See SC Revenue Ruling #91-15 for a detailed listing.

South Carolina provides deductions for contributions to the South Carolina Tuition Prepayment Program and to the South Carolina College Investment Program ("Future Scholar"). South Carolina does not provide a deduction for contributions to IRC Section 529 plans in general.

You can deduct amounts contributed to the plans in the year of the contribution.  Contributions made to the Future Scholar program by April 15 can be deducted for either the current or the previous tax year.

For more information, see SC Code Sections 12-6-1140(11), 59-2-80(D), 59-4-100.

If amounts are withdrawn from the 529 plan and not used for qualifying purposes, the earnings portion of the withdrawal is included in the gross income of the recipient.  The principal amount of the contributions must be recaptured and included in South Carolina taxable income if they were previously deducted and are not withdrawn for qualifying purposes.  

For more information, see SC Code Section 59-2-80(C).

A qualified withdrawal is a withdrawal by an account owner or beneficiary for qualified higher education expenses or as otherwise permitted under Section 529 of the Internal Revenue Code of 1986, as amended, without a penalty required by the section.

For more information, see SC Code Section 59-2-30(12).

South Carolina provides individual taxpayers with a deduction (not a credit) for adopting a special needs child. The deduction is $2,000 for each adopted special needs child who is under 18 at the time of adoption. A letter from the South Carolina Department of Social Services must be attached to the tax return certifying the child as a “special needs child.”

For more information, see SC Code Section 12-6-1140(7).

The deceased taxpayer's return should include any deductions they were eligible to take based on income earned while they were alive. A surviving spouse may also be able to take additional deductions for income they receive.

• A surviving spouse receiving qualified retirement income on behalf of a deceased spouse may deduct up to $3,000 or $10,000 of the qualified retirement income, based on the age of the deceased spouse if they were alive. The surviving spouse must receive the decedent's retirement income as a surviving spouse. This is in addition to the surviving spouse's own retirement plan deduction.
• Taxpayers can deduct all military retirement income included in their South Carolina taxable income. Military retirement income means taxable income received by the taxpayer or the taxpayer's surviving spouse from a qualified military retirement plan. For a surviving spouse, military retirement income includes a retirement benefit plan and dependent indemnity compensation received due to the deceased spouse's military service. The surviving spouse military retirement deduction is in addition to any retirement deductions claimed on the taxpayer's own retirement income. 

File an SC 1310 to claim a refund on the deceased taxpayer's return. Follow the instructions on the SC1310 to determine if you need to send a copy of the death certificate or the court certificate showing your appointment as a representative.

Refer to SC1040 instructions and SC Revenue Ruling #22-11 for detailed information and examples.

If you owe $15,000 or more in connection with any SCDOR return, you must file and pay electronically according to SC Code Sections 12-54-250 and 12-54-210.

Yes, the SCDOR will send you an Electronic Mandate Notice.

Yes.

Yes. Penalty and interest will be applied as permitted by law. A penalty of $500 per period will be assessed until you start filing and paying electronically.

File electronically using Fed/State eFile with one of our approved vendors​. This option allows you to file both federal and state (or just the state return) electronically and pay with ACH debit from your checking or savings account. 

Although you cannot file your return on MyDORWAY, you can use MyDORWAY​ to make your payment. We recommend logging in to your MyDORWAY account to make your payment. If you do not have an account, select Make a Payment on the MyDORWAY​ home page without logging in. 

Need a MyDORWAY account? Sign up here!​

You must make Estimated Tax payments if you expect to owe an Income Tax liability of $100 or more with the filing of your SC1040.

Use the Estimated Tax Worksheet, found in the instructions of the ​SC1040ES, to compute your Estimated Tax for tax year 2025:​

• ​If you are a resident of South Carolina, use your 2024 SC1040 as a basis for figuring your Estimated Tax.
• If you are a nonresident of South Carolina, use your 2024 SC1040 and the Schedule NR as a basis to calculate the modified South Carolina taxable income to enter on line 3 of the worksheet.

The following taxpayers do not have to file a Declaration of Estimated Tax:

• Farmers and commercial fishermen whose gross income from farming or fishing for 2024 or 2025 is at least two-thirds (66.67%) of their total gross income from all sources. Instead of making four quarterly Estimated Tax payments, farmers and commercial fishermen may choose to pay all of their Estimated Tax by January 15, 2026, or file their 2025 SC1040 and pay the total tax due by March 2, 2026.
• Individuals whose prior tax year liability was $0 for a full 12 months.
• ​Nonresidents of South Carolina doing business in this state on a contract basis where the contract is more than $10,000 and tax is withheld at 2% from each contract payment.

Save time and paper by filing using our free online tax portal, MyDORWAY, at dor.sc.gov/pay. Select Individual Income Tax Payment to get started. You do not need to log in or create a MyDORWAY account. However, the SCDOR encourages you to create a MyDORWAY account, giving you 24/7 access to your tax information.  Get started at dor.sc.gov/MyDORWAY. 

If you pay by check, use the SC1040ES​. Make your check payable to SCDOR. Include your SSN, tax year, and SC1040ES in the memo. Mail your SC1040ES and payment to the address on the voucher.  Do not send cash.

Do not mail the SC1040ES if you pay online.

Request your extension to file by paying your balance due on our free tax portal, MyDORWAY, at dor.sc.gov/pay. Select Individual Income Tax Payment to get started. Your payment on MyDORWAY automatically submits your filing extension request. No additional form or paperwork is required. If filing the SC4868 by paper, mail the original with payment, if any.

You must pay at least 90% of your state tax due with the extension request. The payment must be made by April 15, or before the original due date of a fiscal year return. This extension will allow you an additional six months to file your return. The extension of time to file your South Carolina tax return granted by this request does not extend the time for payment of tax.

If you do not anticipate an Income Tax liability and you have been granted a federal extension of time to file a federal Income Tax return, the SCDOR will accept a copy of the federal extension. In this case, you do not need to send South Carolina a copy of the federal form by the due date of the tax return. 

Check the Extension box on the front of your SC1040 to indicate that you filed a state or federal extension. 

See SC Code Section 12-6-4980.

The composite return may be extended by filing the SC4868. Any tax estimated to be due must be paid with the timely filed extension. A composite return cannot be extended by filing the SC1120T or federal Form 7004. Likewise, the extension of the composite return does not extend the South Carolina S Corporation (SC1120S) or partnership (SC1065) tax return.

Request your extension to file by paying your balance due on our free tax portal, MyDORWAY, at dor.sc.gov/pay. Select Individual Income Tax Payment to get started. Your payment on MyDORWAY automatically submits your filing extension request. No additional form or paperwork is required. If filing the SC4868 by paper, mark the Composite Filer box and mail the original with payment, if any.

Check the Extension box on the front of your SC1040 to indicate that you filed an extension. 

See also SC Revenue Procedure #17-2.

If you are a South Carolina resident, you are generally required to file a South Carolina Income Tax return if you are required to file a federal return. If you are a nonresident or part-year resident, you are generally required to file a South Carolina return if you work in South Carolina or are receiving income from rental property, businesses, or other investments in South Carolina.

Individual Income Tax returns on a calendar year tax period are due April 15 of the following year. 

A return for a fiscal year tax period is due by the 15th day of the fourth month following the close of your tax year. On the front of the return, complete the dates covered by the fiscal year.

A taxpayer will not be subject to penalties and interest if they file and pay electronically by May 1.

The electronic incentive does not apply to federal returns or returns submitted by paper.

South Carolina residents should file an SC1040. A part-year resident or nonresident of South Carolina should file an SC1040 with a completed Schedule NR (Nonresident Schedule) attached.

You can file your South Carolina Income Tax return using one of the following methods:

• ​Online filing using an approved software vendor​
• Electronic filing using a professional tax preparer
• Paper return

You are a South Carolina resident, even if you live outside South Carolina, when:

1. Y​our intention is to maintain South Carolina as your permanent home; AND
2. South Carolina is the center of your financial, social, and family life; AND
3. When you are away, South Carolina is the place to which you intend to return.

You are a nonresident if your permanent home is outside South Carolina all year and none of the above apply.​

For more information on residency and domicile, refer to Determining a Taxpayer’s Domicile for Income Tax Purposes.

An individual who is a South Carolina resident for only a portion of the tax year may choose the filing method below that is the most beneficial: 

• Compute South Carolina tax as a South Carolina resident for the entire year. File the SC1040 including all federal taxable income and use the SC1040TC to claim a credit for Income Tax paid to another state.
• Compute South Carolina tax using the Schedule NR. Include in Column B of the Schedule NR only the amounts that are taxable to South Carolina. Amounts taxable to South Carolina include all items of income, gain, loss, or deductions earned from South Carolina sources or while you are a South Carolina resident. File the SC1040 and attach the completed Schedule NR.

A nonresident individual receiving South Carolina income from wages, rental property, businesses, or other investments in South Carolina, must file an SC1040 South Carolina Individual Income Tax Return and Schedule NR Nonresident Schedule.

See SC Code Sections 12-6-1720 and 12-6-2220.

Gig work is income earned by providing on-demand work, services, or goods. Often these are temporary jobs or projects that are booked through digital platforms, like an app or a website. Gig work includes ride-hailing drivers, delivery drivers, musicians, writers, tradespeople, consultants, and those who provide rental services or goods.

Gig workers are considered independent contractors. They are generally required to pay Income Taxes, Federal Insurance Contribution Act or Self-employment Contribution Act tax, and additional Medicare taxes. They must report their income from gig employment on their tax return if they earn $400 or more from gig work, even if they are paid in cash, goods, or virtual currency and even if they don’t receive a W-2 or 1099. Use sales receipts to report any income not reported to you in a W-2 or 1099. Gig economy workers are encouraged to keep good records, including records of business expenses.

Gig economy workers should file the SC1040 for South Carolina purposes. For federal purposes, file the Form 1040 along with Schedule SE (Self-Employment Tax) and either the Schedule C (Profit or Loss from Business – Sole Proprietorship) or Schedule C-EZ (Net Profit from Business – Sole Proprietorship).

If gig work is your primary source of income you may want to consider making estimated tax payments throughout the year to avoid a large tax bill when you file your return. Or, if you have another job where your employer withholds taxes from your paycheck, you can complete a new W-4 to withhold additional taxes.

A nonresident individual who has South Carolina rental property as an investment in South Carolina should file the SC1040 and attach a Schedule NR Nonresident Schedule. Rents received from the rental of real estate, less all related expenses, are allocated to South Carolina providing the property is not used in or connected with the taxpayer's trade or business.

See SC Code Section 12-6-2220.

A student attending college in South Carolina and working in South Carolina should file a tax return to report income earned in South Carolina and claim a refund for additional tax that may have been withheld. A South Carolina resident will file the SC1040. A nonresident will file the SC1040 and attach a completed Schedule NR.​

As a resident of South Carolina, you are taxed on all your income regardless of where it is earned. In order to avoid double taxation, South Carolina allows a tax credit for taxes you paid to another state on wages earned in that state.

For South Carolina purposes, file the SC1040 with the SC1040 TC claiming a credit for taxes paid to another state, and attach a copy of the other state’s return and the federal return. A copy of the other state’s return and the federal return must be attached to the SC1040.

See SC Code Sections 12-6-2220(6), 12-6-3400.

If you file married filing jointly for federal purposes, you will also file married filing jointly for South Carolina purposes. If one taxpayer is a resident of South Carolina and one is not, file the SC1040 with the accompanying Schedule NR. Column A of the Schedule NR is the income from your federal return and Column B of the Schedule NR includes only the income earned while a resident of South Carolina or income earned from South Carolina sources.

If you enter the armed forces when you are a South Carolina resident, you do not lose your South Carolina residency status, even if you are absent from the state on military orders. You are subject to the same residency requirements as any other South Carolina resident and are required to file a South Carolina Income Tax return. Use the same filing status for South Carolina as you used on your federal return.

Usually, if a spouse survives, that person files the return. The filer could also be an executor, administrator, or representative named in the person's will or appointed by a judge. If none of those exists, a personal representative will file the return. Please note:

• The final return is due by the regular April deadline for Individual Income Tax returns unless the surviving spouse or representative files for an extension.​​
• When filing the return, check the box for “deceased" next to the appropriate Social Security number. If filing by paper, this box is located at the top of the SC1040.
• For more filing information, see our FAQ, What filing status should a surviving spouse choose when filing?

Signing the return 
When filing a return for a deceased taxpayer:

• If an appointed representative is filing the return, they must sign it. On joint returns, the surviving spouse also must sign.
• If there isn't an appointed representative, the surviving spouse filing a joint return should sign and write “filing as surviving spouse" beside their signature.
• If there's no appointed representative and no surviving spouse, the person in charge of the deceased taxpayer's property should file and sign as a personal representative.
• When filing electronically, follow the software provider's instructions on signing.

Because the South Carolina return starts with what was filed with the IRS, it's important to choose the appropriate filing status and keep that status on the South Carolina return. 

A surviving spouse who does not remarry during the year typically has two options for filing status in the year their spouse passes away: 

• Married filing jointly. This filing status offers a higher standard deduction and usually results in a lower Income Tax calculation. It is the most common status used by a couple.
• Married filing separately. A surviving spouse may choose this status if they want to avoid taking responsibility for their deceased spouse's tax liabilities or if the total tax would be lower by filing separately.

In years after the spouse passes away, a surviving spouse who has not remarried typically has three options for filing status:

• Single. A surviving spouse who does not remarry and does not have any dependents will likely use this filing status.
• Head of Household. This filing status is for those who are unmarried, or considered unmarried, at the end of the tax year, paid more than half the cost of keeping up a home, and had a qualifying person, such as a dependent, living with them for more than half the year. This filing status offers a higher standard deduction than the Single filing status.
• Qualifying Surviving Spouse. This filing status, previously known as Qualifying Widow or Widower, is available for a surviving spouse who still has a qualifying dependent child, stepchild, or adopted child living in their home. To qualify, the surviving spouse must have been entitled to file a joint return in the year the spouse died and must pay more than half the cost of keeping up their home. This filing status is only available for two years after the year the spouse passes away.

Interest income on obligations of states and political subdivisions other than South Carolina is taxable to South Carolina. In the case of a mutual fund, the percentage of exempt interest income attributable to out-of-state non-federal obligations is also taxable to South Carolina.

Interest income from the following obligations is taxable for state purposes: Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and Government National Mortgage Association (Ginnie Mae).

See SC Revenue Ruling #16-2 for a detailed listing.

Yes. South Carolina recognizes Internal Revenue Code Section 1031. No South Carolina adjustment is necessary.

Pension income received while a resident of South Carolina is taxable to South Carolina. However, we do allow a total and permanent disability retirement income deduction. If disability retirement income is taxed on your federal return and you are totally and permanently disabled, you may be able to deduct this income from your South Carolina taxable income.

To qualify, you must be totally and permanently disabled, unable to be substantially gainfully employed, receiving income from a disability retirement plan, and eligible for the homestead exemption under SC Code Section 12-37-250. You must attach a copy of the physician's statement establishing that you are permanently and totally disabled.

For more information, see SC Code Sections 12-6-1140(4), 12-37-250.

Unemployment compensation, taxed on your federal return, is taxable to South Carolina if it was paid by South Carolina or received while a resident of South Carolina.

No. South Carolina does not tax compensation received for the customary annual training period up to 15 days for guard members or 14 days plus travel time for reserve members, weekend drills, and inactive duty training.

For more information, see SC Code Section 12-6-1120(7) and SC Revenue Ruling #09-16.

Yes, for tax years beginning on or after January 1, 2009. See SC Revenue Ruling #24-5 for more information.

For tax years 2023 and later, military servicemembers and their spouses may elect for tax purposes to use:

• The domicile state of the servicemember
• The domicile state of the spouse
• The permanent duty station of the servicemember

No. South Carolina does not tax compensation received for the customary annual training period up to 15 days for guard members or 14 days plus travel time for reserve members, weekend drills, and inactive duty training.

For more information, see SC Code Section 12-6-1120(7) and SC Revenue Ruling #09-16.

Yes. Civil penalties are imposed for failing to file an Income Tax return. A failure to file penalty is imposed for failing to file a tax return on or before its due date, determined with regard to any extension of time for filing. The penalty is 5% of the tax amount if the failure is for not more than one month, with an additional 5% for each additional month or fraction of the month during which the failure continues, not to exceed 25% in the aggregate.

Also, a failure to pay penalty is imposed for failing to pay the amount shown as tax on any return on or before its due date, determined with regard to any extension of time for paying. The penalty is 0.5% of the amount of tax if the failure is for not more than one month, with an additional 0.5% for each additional month or fraction of the month during which the failure continues, not to exceed 25% in the aggregate.

Other penalties may apply. For more information, see SC Code Section 12-54-43.

View our Penalty & Interest Calculator on MyDORWAY >

 You may be charged a penalty if:

• You do not pay enough Estimated Tax.
• You do not make your payments by the due date and for the required amount.
• You do not pay at least 90% of the total tax due.

You will not be charged a penalty if your underpayment results from personal service income earned in another state and tax was withheld by the other state.

You can avoid a penalty if you make timely Estimated Tax payments equal to 100% of the tax due on last year's SC1040 (the 100% rule). You must have filed an SC1040 for the prior tax year, and it must have covered a 12-month year.

If the adjusted gross income on your prior year SC1040 was more than $150,000, the 100% rule is adjusted to 110% of last year's tax liability. Calculate adjusted gross income by using federal guidelines and making South Carolina adjustments.

Refer to the SC2210, Underpayment of Estimated Tax, for more information on calculating the underpayment penalty. 

We recommend choosing direct deposit. It’s the fastest, easiest, most secure way to receive your refund. As soon as we’ve processed your return, your refund will be deposited into your bank account. You don’t have to wait for paper check printing, worry about your check getting lost in the mail, or take the time to deposit your check.

If you’re filing your return online, choose direct deposit when prompted by the software you’re using. If you’re filing a paper SC1040 return, choose direct deposit on line 35 and enter your bank account number and routing number on line 37. If you’re using a tax preparer to file your return, tell your preparer that you want to receive your refund by direct deposit.

No matter how you file your return, you’ll need your bank account number and routing number handy. You can usually find that information on a personal check, by logging in to your bank’s website, or by contacting your bank directly.

Yes. Make sure you tell your preparer that you want to choose the direct deposit option before they finish filing your return. You’ll need to have your bank account number and routing number handy so that they can enter that information on your return.

If you don’t select a refund option, we will mail a paper check to the address you entered on your return.

If you don’t have a bank account, you can receive your refund by paper check. You can cash your check using a check-cashing service.

No, the SCDOR no longer offers a prepaid debit card refund option.

The SCDOR mails a refund check to the address shown on your tax return. Some post offices forward mail for the SCDOR if you filed a change of address with the post office; others do not. If your refund check is returned to the SCDOR by the post office and you notify us of your new mailing address, we will send the check to your new address.

Save time and paper by changing your address on MyDORWAY. Log in to your existing account, select the More tab, then click Manage Names & Addresses under the Names & Addresses section. If you don’t have a MyDORWAY account, complete the SC8822I, and email it along with any required documents to TaxSupport@dor.sc.gov.

You can check your refund status online at dor.sc.gov/refund or by calling 1-844-898-8542. Amended returns and back year filings may take additional time to process.

Errors found while processing your return may result in additional delays.

In general, a claim for refund must be filed within three years from the date the return was filed or originally due or two years from the date the tax was paid. If a claim is filed within three years from when the return was filed or originally due, the refund is limited to the tax paid within the past three years plus the period of any extension. Withholding, estimated taxes, and amounts paid with extensions are considered to have been paid on the date the return was originally due. If a claim is not filed within three years from the date when the return was filed or originally due, the refund is limited to tax paid during the past two years.

See SC Code Section 12-54-85, SC Revenue Ruling 13-1

You are not required to file a South Carolina Income Tax return if you are a South Carolina resident age 65 or older and:

1. Your filing status is single, qualifying widow(er), or head of household and your gross income is less than the federal gross income filing requirement plus the age 65 and older deduction
2. Your filing status is married filing separately, you and your spouse do not itemize deductions, and your gross income is less than the federal gross income filing requirement plus the age 65 and older deduction, or
3. Your  filing status is married filing jointly and your combined income with your spouse is less than the federal gross income filing requirement plus your combined age 65 and older deduction

For more information, see SC Code Section 12-6-4910.

No. Social Security benefits and railroad retirement taxed for federal purposes are not subject to tax in South Carolina.

For more information, see SC Code Section 12-6-1120(4).

Retirement income received by a resident individual is taxable in South Carolina. The residency of a taxpayer when the taxpayer receives the retirement income, not the place of employment where the retirement income was earned, determines the taxability of retirement income. South Carolina does not tax the retirement income of nonresident individuals.

For more information, see SC Code Section 12-6-1130. Also, see SC Code Section 12-6-3500, which provides for a credit over the qualifying taxpayer's lifetime for other state income taxes paid on the employee's contributions.

Yes. An individual taxpayer receiving retirement income from their own plan may deduct up to $3,000 of qualifying retirement income annually until reaching age 65 and deduct up to $10,000 of such retirement income annually at age 65 and thereafter. For this purpose, "retirement income" means the total of all otherwise taxable income not subject to a penalty for premature distribution from qualified retirement plans (which includes those plans defined in Internal Revenue Code Sections 401, 403, 408, 457) and public employee retirement plans of the federal, state, and local governments, including military retirement.

If both spouses receive retirement income, each spouse is entitled to a retirement income deduction. A surviving spouse who also receives retirement income that is attributable to a deceased spouse is allowed a separate retirement deduction on behalf of the deceased spouse. The deduction for retirement income received as a surviving spouse is based on the age the deceased spouse would have been had they lived.

Refer to SC1040 instructions for more information.

An Income Tax deduction of up to $15,000 is allowed against any South Carolina taxable income of a resident individual who is 65 or older by the end of the tax year. The following requirements apply to this deduction:

a. Amounts deducted as retirement income (see above discussion) reduce this $15,000 deduction.

b. Amounts deducted as a surviving spouse (see above discussion) do not reduce this $15,000 deduction.

c. Taxpayers filing a joint return are allowed a deduction of up to $15,000 when only one spouse is 65 or older and up to $30,000 when both spouses are 65 or older by the end of the tax year.

Note: For taxpayers age 65 and older, the total of the retirement deduction and age 65 and older deduction cannot exceed $15,000 per taxpayer. (Ex. If a taxpayer claims the $10,000 retirement deduction, they would only be eligible for $5,000 as the age 65 and older deduction.)

Refer to SC1040 instructions for more information.

Pension income received while a resident of South Carolina is taxable to South Carolina. However, South Carolina allows a retirement deduction and an age 65 and over deduction.

Refer to SC1040 instructions for more information.

Beginning with tax year 2022, you may deduct all military retirement income included in your South Carolina taxable income.

Refer to SC1040 instructions and SC Revenue Ruling #22-11 for detailed information and examples.​

A complete listing of available Income Tax credits can be found on our Tax Credits page.

South Carolina provides married individuals filing a joint return a credit equal to .007 of the lesser of:

1. the South Carolina qualified earned income of the spouse with the lower qualified earned income for the year or
2. the following multiplier based on the tax year
   • $50,000 for tax year 2023 and after
   • $46,667 for tax year 2022
   • $43,333 for tax year 2021
   • $40,000 for tax year 2020
   • $36,667 for tax year 2019
   • $33,333 for tax year 2018
   • $30,000 for tax year 2017 and prior

For more information, see SC Code Section 12-6-3330 and the SC1040 instructions.

South Carolina allows a credit against taxes paid to another state on income that is taxed in South Carolina and another state. Since the credit is not specifically limited to a tax paid to a state of the United States, the credit is allowed for taxes paid to political entities equivalent to a state which are located outside the borders of the United States. An example of tax paid to a political entity equivalent to a state is a Canadian province. A tax paid to another country, such as Italy, would be equivalent to a tax paid to the United States, not a state, and would not be allowed the credit. Puerto Rico is not considered a state for the purposes of this credit.

See SC Code Section 12-6-3400.

The Tuition Tax Credit provides a refundable Individual Income Tax credit for tuition paid to an institution of higher learning.

Beginning with tax year 2018, the refundable Tuition Tax Credit increased to 50% of the tuition paid to an institution of higher learning (both two-year and four-year institutions), not to exceed $1,500 per student.

For tax years prior to 2018, the refundable Tuition Tax Credit is equal to 25% of the tuition paid, not to exceed $850 for a student attending a 4-year institution or $350 for a student attending a 2-year institution.

The credit is claimed by the student paying the tuition or by an individual paying the tuition who is eligible to claim the student as a dependent on their federal Income Tax return, whoever actually paid the tuition. It may be claimed for no more than 4 consecutive years after the student enrolls in an eligible institution.

Please note that the requirements and provisions differ from those governing the federal tuition tax credits.

Refer to the I-319.

See SC Code Section 12-6-3385, SC Revenue Ruling #24-3.

For tax years 2018 through 2022, a resident taxpayer (full-year or part-year resident) may claim a refundable credit for the lesser of the increase in South Carolina Motor Fuel User Fee paid during the tax year or the preventative maintenance costs incurred in South Carolina during the tax year. The credit is limited to two private passenger motor vehicles or motorcycles. In order to claim the credit, you must keep records (receipts or invoices) to prove the date, amount, and type of the preventative maintenance expenses incurred in South Carolina for each vehicle and records (receipts) on the gallons of motor fuel purchased in South Carolina for each vehicle. The SCDOR will not require you to submit the detailed information with your return. However, the information used to compute your credit should be kept as record to provide SCDOR if the SCDOR questions the credit on your return. To claim the credit, attach a completed I-385 to your return.

Beginning with tax year 2023, the Motor Fuel Income Tax Credit is no longer available.

For more information, see SC Revenue Ruling 17-6 and the I-385.

Beginning with tax year 2018, full-year residents may claim the South Carolina Earned Income Tax Credit.

The non-refundable credit is equal to a percentage of the Federal Earned Income Tax Credit allowed the taxpayer. The percentage for:

• tax year 2023 and after = 125%
• tax year 2022 = 104.17%
• tax year 2021 = 83.33%
• tax year 2020 = 62.50%
• tax year 2019 = 41.67%
• tax year 2018 = 20.83%

To claim the credit, attach a completed TC-60 and SC1040TC to your return.

We recommend filing online using one of our electronic filing options.

Or, you can file a paper return. Find forms at dor.sc.gov/find-a-form.

Individual Income Tax rates range from:

• 0% to a top rate of 6.2% on taxable income for tax year 2024
• 0% to a top rate of 6.4% on taxable income for tax year 2023
• 0% to a top rate of 6.5% on taxable income for tax year 2022
• 0% to a top rate of 7% on taxable income for tax year 2021 and prior.

Tax brackets are adjusted annually for inflation.

Active trade or business income is all pass-through income from sole proprietorships, partnerships, S Corporations, or Limited Liability Companies not taxed as C Corporations. Active trade or business income does not include passive investment income or expenses related to it, capital gains or losses, guaranteed payments for personal services, or amounts reasonably related to personal services.

You may elect to have qualifying active trade or business income from a pass-through entity taxed at a flat 3% rate instead of the graduated rates for Individual Income Tax.

Use the I-335 to claim this election and to check the current rate. For more information, see SC Code Section 12-6-545 and SC Revenue Ruling #08-2.

You should receive a W-2 (Wage and Tax Statement) from each of your employers. Employers have until January 31 to send you a W-2 earnings statement.

If you haven’t received your W-2, contact your employer to inquire if and when the W-2 was mailed. If it was mailed, it may have been returned to the employer because of an incorrect or incomplete address. After contacting the employer, allow a reasonable amount of time for them to resend or to issue the W-2.

You still must file your tax return or request an extension to file by the filing deadline, even if you do not receive your W-2. If you have not received your W-2 by the due date and have already attempted to contact your employer, you may use an SC4852, Substitute for Form W-2 Wage and Tax Statement. Attach an SC4852 to the return, estimating income and withholding taxes as accurately as possible. There may be a delay in any refund due while the information is verified.

On occasion, you may receive your missing W-2 after you filed your return using the SC4852, and the information may be different from what you reported on your return. If this happens, you must amend your return.

South Carolina does not issue W-2 Summary Transcripts. If you are unable to obtain a W-2, see the SC4852 for more information.

The S Corporation or partnership must provide a federal form 1099-MISC marked “SC ONLY” to each nonresident shareholder or partner who had income tax withheld. The 1099-MISC should include the shareholder or partner’s name, address, Social Security Number, and amount of tax withheld. The nonresident shareholder or partner must attach a copy of the 1099-MISC to their South Carolina Income Tax return as verification for the withholding. Do not use a K-1 from the partnership as verification of withholding instead of the 1099-MISC. The nonresident shareholder or partner should claim this withholding on line 20 of their SC1040 as “other SC withholding.”

For more information, see SC Code Section 12-8-590.

South Carolina requires withholding on purchases of real property, or real and associated tangible personal property, from a nonresident seller. The buyer or whoever withholds on the buyer’s behalf is liable for withholding and remitting the money to the SCDOR on the I-290​ (Nonresident Real Estate Withholding). The withholding payment is due on or before the fifteenth day of the month following the month in which the sale took place.

The nonresident seller is required to file a South Carolina Income Tax return for the year of the sale and report the gain or loss on the sale. On their Income Tax return, the seller will apply the amount withheld against any Income Tax due, and any excess will be refunded.

For more information, see SC Code Section 12-8-580 and SC Revenue Ruling #09-13.