Individual Income

INDIVIDUAL INCOME TAX ×

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Phone: 1-844-898-8542
Email: IITax@dor.sc.gov

What is South Carolina Individual Income Tax?

South Carolina has a simplified income tax structure which follows the federal income tax laws. South Carolina accepts the adjustments, exemptions and deductions allowed on your federal tax return with few modifications. Your federal taxable income is the starting point in determining your state income tax liability. Individual income tax rates range from 0% to a top rate of 7% on taxable income. Tax brackets are adjusted annually for inflation.

New for Tax Year 2020

2020 LEGISLATIVE UPDATE – A list of significant changes in tax and regulatory laws and regulations enacted during the 2020 legislative session is available from the SCDOR Policy Division. Review Information Letters 20-19 and 20-31.

CONFORMITY – As of the 2021 Legislative Session, South Carolina conforms to the Internal Revenue Code as of December 31, 2020, except as otherwise provided. If Internal Revenue Code sections adopted by South Carolina which expired on December 31, 2020 are extended, but otherwise not amended, by congressional enactment during 2021, these sections are also extended for South Carolina Income Tax purposes in the same manner that they are extended for federal Income Tax purposes.

UNEMPLOYMENT COMPENSATION – For tax year 2020, South Carolina adopted the federal provisions excluding up to $10,200 of unemployment compensation from taxable income. You must have less than $150,000 in federal adjusted gross income for 2020 to be eligible for this tax relief.

If you already filed your federal and South Carolina Individual Income Tax returns, you will need to amend your South Carolina return:

If you filed a federal return that included unemployment compensation, the IRS plans to adjust your return and notify you of the corrections. If you have not received a notice from the IRS and want to go ahead and file, simply subtract the amount of your unemployment compensation, up to $10,200, from your federal taxable income. Include this adjusted amount on your South Carolina amended return.
If you filed a federal return that excluded unemployment compensation and you added that amount back to your original South Carolina return, you will need to remove any unemployment compensation, up to $10,200, on your South Carolina amended return.
For faster processing, file your amended SC1040 electronically. Check with your tax preparer or software provider to see if you can file your amended return electronically.
If you need to file by paper, file a new 2020 SC1040, and check the Amended Return box. Complete the return as it should have been filed, including all schedules and attachments, plus an Amended Return Schedule (Sch. AMD).
Do not use the SC1040X to amend the 2020 South Carolina Individual Income Tax return.
If your filing status is married filing jointly and both spouses received unemployment benefits, both can exclude up to $10,200.
You may need to adjust any income-based nonrefundable tax credits you previously filed, especially the Earned Income Tax Credit, to reflect your lower income.
Allow a minimum of 12 weeks for your amended South Carolina return to be processed.

If you filed an extension and have not yet filed your federal and South Carolina Individual Income Tax returns:

You must file your federal tax return first, excluding up to $10,200 of unemployment compensation. No adjustments are needed to your South Carolina Individual Income Tax return.
File your returns, including all schedules and attachments, by the extension due date of October 15, 2021.

Remember to file online if available and choose direct deposit to receive your refund for safe, accurate, and fast processing.

Learn more about these updates for state income taxes in Information Letter 21-14.

For more information about the federal tax exclusion of unemployment benefits under the American Rescue Plan, visit IRS.gov.

INCREASE IN SOUTH CAROLINA DEPENDENT EXEMPTION (line w of the SC1040) – The South Carolina dependent exemption amount for 2020 is $4,260 and is allowed for each eligible dependent, including both qualifying children and qualifying relatives.

INCREASE IN MOTOR FUEL INCOME TAX CREDIT – The refundable Income Tax credit increased from 3 cents per gallon to 7 cents per gallon in 2020. Full or part-year resident taxpayers may claim the refundable credit for the lesser of the increase in South Carolina Motor Fuel User Fee they paid during 2020 or the preventative maintenance costs they incurred in South Carolina during the tax year. The credit is limited to two private passenger motor vehicles or motorcycles. To claim the credit, attach a completed I-385 to your return.

INCREASE IN EARNED INCOME TAX CREDIT – Full‐year residents may claim the South Carolina Earned Income Tax Credit. For 2020, the non‐refundable credit is equal to 62.50% of the Federal Earned Income Tax Credit allowed the taxpayer.

INCREASE IN TWO WAGE EARNER CREDIT – The maximum credit available for the Two Wage Earner Credit (claimed by a married couple filing jointly when both taxpayers have earned income taxed to South Carolina) has increased. For 2020, the credit is 0.7% of the lesser of $40,000 or the South Carolina qualified earned income of the taxpayer with the lower qualified income for the taxable year.

SC DEPARTMENT OF ARCHIVES AND HISTORY CONTRIBUTION FOR CHECK-OFF – Contributions to the SC Department of Archives and History are used to purchase or preserve collections with significant historical value to the State. For more information visit the SC Department of Archives and History at scdah.sc.gov.

PRECEPTOR CREDIT AND DEDUCTION – For tax years 2020 through 2025, a nonrefundable Individual Income Tax credit is available for eligible physicians, advanced practice registered nurses, or physician assistants who serve as preceptors for qualifying clinical rotations required by a medical school, physician assistant program, or advanced practice nursing program. Credit amounts are phased in over a five-year period. If a taxpayer serves additional rotations that exceed the credit limit for the tax year, they may be eligible for a deduction on line v of the SC1040. Use the TC-62 to determine if you are eligible for the credit and to calculate the credit and the deduction. For more information, refer to SC Revenue Ruling 20-2.

SOUTH CAROLINA HOUSING TAX CREDIT – The South Carolina Housing Tax Credit is a nonrefundable tax credit available to eligible owners of residential low-income rental buildings who are certified by the South Carolina Housing and Finance Development Authority. Use the TC-63 to claim the credit. For more information, refer to Revenue Ruling 21-5.

Filing Tips

OCTOBER 15: Extended Income Tax Returns are DUE!
See our Tax Tip Reminders to help you make the extension deadline.

Preparing for Tax Season

Tips for Choosing a Tax Preparer

Taxpayers should be aware that there are some tax preparers seeking to unlawfully take advantage of unsuspecting clients. The SCDOR urges South Carolinians to be cautious and informed when selecting tax preparation assistance.

The Internal Revenue Service offers the following tips to help taxpayers make an informed decision on selecting a tax preparer:

Check the preparer’s qualifications. All paid tax return preparers must have a Preparer Tax Identification Number (PTIN). You can use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to help find a preparer.
Check the preparer’s history. Find out if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and the license status of credentialed preparers. Check with state boards of accountancy for certified public accountants; state bar associations for attorneys; and the IRS Office of Enrollment for enrolled agents.
Ask about their service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers.
Ask to e-file. The quickest way to get your refund is to electronically file and use direct deposit.
Make sure the tax preparer is available. Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case you have questions.
Provide records and receipts. Good preparers will ask to see a taxpayer’s records and receipts. They’ll ask questions to figure things like the total income, tax deductions, and credits.
Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.
Review the entire return before signing it. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
Avoid preparers who refuse to sign a return they prepare or assist in preparing, on paper or electronically. The IRS calls these “ghost” preparers. They may require cash payments and not give receipts. They also may direct any refund into their bank account.
Review details about your refund. Make sure your refund goes directly to you - not to the preparer's bank account. Review the routing and bank account number on the completed return.
Report Abusive Tax Preparers to the IRS. Most tax return preparers are honest and provide great service to their clients. However, some preparers are dishonest. Report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer.

Read the full IRS article here.

Dos and Don'ts for Filing Your Individual Income Tax

DO	File online and choose direct deposit for the fastest access to your refund.
DO	Pay online using our free secure tax portal, MyDORWAY at dor.sc.gov/pay.
DO	Use the proper SC form. Make sure that the form you use is for the correct tax year.
DO	Include all Social Security Numbers (SSN) on the SC return and verify they are correct.
DO	Include all Individual Taxpayer Identification Numbers (ITIN) on the SC return and verify they are correct. If this is your first year filing a SC return after being assigned an ITIN, be sure to include a copy of the ITIN letter received from the Internal Revenue Service (IRS).
DO	Verify the mailing address is complete and accurate on the return.
DO	Mark your filing status. Generally, it should match the filing status marked on your federal return.
DO	If completing Schedule NR, attach to the SC1040. Be sure the NR indicator box is marked on page 1 of the SC1040.
DO	If you file a federal or state extension, be sure to mark the appropriate box on page 1 of the SC1040.
DO	Make sure the amount used on line 1 of the SC1040 is the federal taxable income.
DO	If you claim a nonrefundable tax credit, attach an SC1040TC and all supplemental tax credit schedules to support the tax credits claimed on the SC1040TC.
DO	Include SC Withholding amount on the proper line for W-2’s and/or 1099’s.
DO	Attach copies of all W-2’s and/or 1099’s to support the withholding amount claimed on the SC return.
DO	Complete the appropriate refund option on page 3 of the SC1040. If choosing the direct deposit option, verify the routing and account number are correct.
DO	If requesting a paper check, it will be mailed to the address that is shown on the return.
DO	Sign your return! Both spouses must sign a married filing joint return.
DO	Send all 3 pages of the SC1040. Be sure to include any additional state/federal schedules and documents required.
DO	Keep a complete copy of your SC return for your records.

DON'T	Use federal gross income on line 1 of the SC1040. (Use federal taxable income)
DON'T	Claim the two wage earner credit unless the filing status is married filing jointly.
DON'T	Claim state withholding paid to another state.
DON'T	Use an SC1040X to change or correct your 2020 return. Instead file a SCH AMD and a new SC1040 with the amended return box checked.
DON'T	Send additional copies of your tax return. If you file electronically, you do not need to submit a paper copy.
DON'T	Contact the SCDOR if your refund was matched to a debt that has been reported to this agency by a claimant agency. Contact the claimant agency for information about the debt or to make an appeal.

Creating a Strong Password

Tips for Avoiding Fraud

Mailing Addresses:

Tax return mailing addresses are listed on the form. Please use the appropriate address, including the entire zip code.

Refunds or no tax due (SC1040/SC1040NR)	All balances due	Estimated Tax (SC1040ES), Extension (SC4868) or Voucher (SC1040V)	Correspondence
SC1040 Processing Center PO Box 101100 Columbia, SC 29211-0100	Taxable Processing Center PO Box 101105 Columbia, SC 29211-0105	South Carolina Department of Revenue IIT Voucher PO Box 100123 Columbia, SC 29202	South Carolina Department of Revenue Income Tax PO Box 125 Columbia, SC 29214-0400

Did you receive an Identity Verification Notice?

You may receive a letter from the SCDOR asking you to complete either the Identity Verification Quiz or Individual Code Verification after filing your return. This is just another step we are taking to ensure that fraudsters are not using your information to file a false return and steal your refund.

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