Summary:
South Carolina taxable income of a partnership is the same as federal partnership taxable income with certain South Carolina modifications. Multi-state partnerships must directly allocate certain items and apply an apportionment ratio to the remaining income (loss) of the partnership. Taxable income (loss) of a partnership flows through and is taxable to the partners in the same manner as for federal partnership income.
South Carolina income taxable to nonresident partners is subject to withholding by the partnership at a 5% rate. Nonresident partners providing affidavits of their intention to file or who are included in a composite return filed by the partnership on behalf of all of its nonresident partners are exempt from the withholding requirement.
New for 2022 tax year
Partnerships must file a Declaration of Estimated Tax if:
- they choose to pay their Active Trade or Business Income Tax at the entity level, and
- they expect to owe an Active Trade or Business Income Tax liability of $100 or more with the filing of their SC1065, Partnership Tax Return.
This expected total tax
does not include Nonresident Withholding Tax paid on behalf of nonresident partners.
Use the SC1065ES, Partnership Declaration of Estimated Income Tax, to make quarterly Estimated Tax payments for your Partnership. Pay online using our free online tax portal, MyDORWAY, at
dor.sc.gov/pay. Select
Business Income Tax Payment to get started. Do not submit the
SC1065ES if you pay online. If filing your
SC1065ES by paper, make your check payable to SCDOR and include your name, FEIN, tax year, and SC1065ES in the memo.
Do not send cash. Mail your SC1065ES and payment in one envelope. Partnerships are not subject to underpayment penalties.
How to File & Pay:
Partnership taxpayers whose South Carolina tax liability is $15,000 or more per filing period
must file and pay electronically.
Due Dates:
Payment of withholding tax is due along with the filing of the return by the 15 day of the third month after year end. An extension to file is not an extension to remit the withholding tax due.
Business Income Tax Refund Status:
To check the status of your current year South Carolina Business Income Tax refund, you will need to
enter the following information on MyDORWAY:
-
FEIN (Federal Employer Identification Number)
-
Refund Amount
Mailing Address:
|
Payment Included |
No Payment |
Extension (SC8736) | Correspondence
|
|---|
|
Payment Included:
South Carolina Department of Revenue
Taxable Partnership
PO Box 125
Columbia, SC 29214-0036 |
No Payment:
South Carolina Department of Revenue
Nontaxable Partnership
PO Box 125
Columbia, SC 29214-0037 |
Tentative:
South Carolina Department of Revenue
Taxable Extension
PO Box 125
Columbia, SC 29214-0036 | South Carolina Department of Revenue
Partnerships
PO Box 125
Columbia, SC 29214-0400 |
