A resident estate belongs to a decedent who was domiciled in South Carolina at the time of their death.

A resident trust is administered in South Carolina.

A resident beneficiary is:

• an individual domiciled in South Carolina;
  
• a corporation or partnership whose principal place or business is in South Carolina; or
  
• a resident estate or trust.
  

A South Carolina Income Tax return must be filed by:

• every estate or trust having a nonresident beneficiary
• every estate or trust having gross income of $600 or more for the tax year
  
• every trust having taxable income for the tax year
  
• every estate in bankruptcy under Chapter 7 or 11, Title 11, US Code, of an individual having gross income of $2,700 or more for the tax year
  

The fiduciary of the estate or trust is responsible for filing the Income Tax return of the estate or trust.

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.
Review electronic services at dor.sc.gov/biz-services.

File the SC8736 to request an extension of time to file the Fiduciary Income Tax return. The request for extension extends the filing due date for up to 5 ½ months.  An extension of time to file your Fiduciary Income Tax return does not extend the time to pay the tax due.

Pay online using our free tax portal, MyDORWAY. Select Business Income Tax Payment to get started. If you pay online, no additional form or paperwork is required

If filing your SC8736 by paper, make your check payable to SCDOR and include your name, FEIN, Tax period ending, and SC8736 in the memo. Do not send cash. Mail your SC8736 and payment in one envelope to the address on the form. 

When filing your SC1041, Fiduciary Income Tax Return, mark the Extension box on the front of the return.

Fiduciaries must make Estimated Tax payments if their Estimated Tax (Income Tax less credits) is determined to be $100 or more. Quarterly installments are due by the 15th day of the fourth, sixth, and ninth months of the tax year and the first month of the following tax year.

Fiduciaries can pay Estimated Income Tax payments online using our free tax portal, MyDORWAY. Select Business Income Tax Payment to get started. 

If filing your SC1041ES by paper, make your check payable to SCDOR and include your name, FEIN, and SC1041ES in the memo. Do not send cash. Mail your SC1041ES and payment in one envelope to the address on the form. 

Your FEIN (Federal Employer Identification Number) is required to ensure proper credit of payments submitted. Providing an incorrect FEIN will result in processing delays and errors in posting the payments.

The South Carolina taxable income of a resident estate or trust begins with federal taxable income and is modified by differences between South Carolina and federal law. The income of an estate or trust doing business in more than one state is subject to the allocation and apportionment provisions in Article 17, Chapter 6, Title 12, SC Code of Laws.

An electing small business trust is taxed at the highest rate as provided in SC Code Section 12-6-510​. 

Any other estate or trust pays the same rate that applies to individuals. An estate or trust may be eligible for the reduced Income Tax rate of 3% on active trade or business income from a pass through business.

See the I-335 and SC Revenue Ruling 08-2.​

Yes, a partnership, S corporation, or Limited Liability Company (LLC) taxed as a partnership or S corporation may file a composite return on behalf of two or more nonresident partners of the partnership, shareholders of the S corporation, or members of the LLC who are individuals, estates, or trusts.  

Yes, an estate or trust making a distribution to a nonresident beneficiary must withhold on the South Carolina income distributed and remit the withholding to the SCDOR. The withholding is computed at South Carolina's top marginal Individual Income Tax rate for the tax year. 

The fiduciary must remit the amount withheld to the SCDOR on or before the due dates for paying Estimated Taxes.

Withholding is not required for nonresident beneficiaries if:

• The trust is exempt from tax under Internal Revenue Code Section 501.
• The nonresident beneficiary is exempt from tax under Internal Revenue Code Section 501.
• The nonresident beneficiary files an I-41 affidavit.
  

By filing an I-41​ affidavit, the nonresident beneficiary agrees to be subject to the jurisdiction of the SCDOR and the courts of South Carolina to determine the South Carolina tax liability, including estimated taxes, interest, and penalties. Filing the affidavit is not an admission of tax liability.

South Carolina has no Estate Tax for decedents dying on or after January 1, 2005.