State Tax Addback- If Itemizing on Federal Return (auto completed in return)
If you itemized on your federal return and claimed state and local income tax or sales tax, you may need to add the amount back to the state return. The worksheet is in the state instructions. We will automatically calculate the addback for you based on your federal entries.
Out of State Losses
South Carolina does not recognize out-of-state losses. Enter the out-of-state losses derived from rental properties or business losses.
National Guard and Military Reserve Expenses
Because inactive duty military reserve income is taxed for federal purposes but deductible on your South Carolina return, you must add back the amount of the federal deduction for expenses related to this income.
Other State and Political Interest Income on Obligations
If you have interest income from other state and political subdivisions that was tax-exempt from your Federal tax return, you must add this income to your South Carolina tax return.
Other Additions to Income
- Bonus Depreciation- Add back the difference between Bonus depreciation and regular depreciation
- Contributions to Exceptional SC deducted on the federal return
- Child Care Program Donations to a nonprofit corporation deducted on the federal return
- Contributions used to claim a credit for Community Development Credit, Industry Partnership Fund Credit, Credit for Child Care Program deducted on the federal return
- Federal NOL when claiming a larger amount than for state purposes
- Expenses related to income exempt or not taxed by South Carolina
- Foreign areas allowances, cost of living allowances and /or income from possessions of the US
- QBI under section 199A must be added back
- Charitable contribution of land deducted under IRC Section 170
- Include any withdrawals during the tax year from a Catastrophe Savings Account
- A business must add back any amount paid for services performed by an unauthorized alien $600 or more a year.
See the instructions for the complete list
- State Section
- Additions to Income
For additional information regarding additions to South Carolina income, please click here.