You can claim a credit for taxes paid to another state on your South Carolina return if you are a resident of South Carolina and the same income is taxed in both South Carolina and another state. The credit is computed only on income that is required to be taxed in both states.
You must have filed a return with both states in order to claim the credit. If you had no tax liability in the other state, you do not qualify to take the credit.
South Carolina Residents
For South Carolina Resident returns, the program automatically calculates this credit if a Non Resident return for another state is attached to your account. If you are required to file a Resident Return for South Carolina and a Part-Year Resident return for another state, you will need to manually enter the information for this credit based on the Part Year return filed for the other state. You must determine the gross amount of income taxed by both South Carolina and the other state and the portion of the tax paid to the other state for that income.
South Carolina Part-Year Residents
For Part-Year Resident returns filing SC Schedule NR, in order to claim a tax credit, you must have been a South Carolina Resident at some time during the tax year. You must determine the gross amount of income taxed by both South Carolina and the other state and the portion of the tax paid to the other state for that income. This scenario normally only occurs if the other state does not allow this credit on their return.
If you claim a credit for taxes paid to another state and the other state later refunds a portion of the tax, you must file an amended South Carolina return.
For additional information pertaining to this credit, please see Form SC 1040-TC.
If you need to manually enter this credit within your account, please follow the steps below:
- State Section
- Credit for Other State Taxes
- Credit for Tax Paid to Another State