According to South Carolina Instructions for Form SC1040, here is a list of South Carolina's Other Additions.
- Taxpayers who claim bonus depreciation under federal law must add back the difference
between the bonus depreciation taken and the depreciation which would have been allowed
without bonus depreciation. - Taxpayers who claim a nonrefundable credit for contributions to Exceptional SC (TC-57) are not
allowed a deduction for these contributions. Add back the amount of the contribution deducted
on the federal return. - Taxpayers who claim a child care program credit for donations to a nonprofit corporation (TC-9)
are not allowed a deduction for those donations. Add back the donation deducted on the federal
return. - Taxpayers who claim credits such as the Community Development Credit (TC-14), the Industry
Partnership Fund Credit (TC-36), and the Credit for Child Care Program (TC-9) may not claim a
deduction for the same qualified contribution which results in the credit. Add back the amount
deducted on the federal return. - Add back the federal net operating loss when it is larger than the South Carolina net operating
loss being claimed. - Add back any expenses deducted on the federal return related to any income not taxed by South
Carolina. Some examples are investment interest to out-of-state partnerships and interest paid
to purchase US obligations. - Add back foreign area allowances, cost of living allowances, and income from US possessions.
- For qualifying investments made after June 30, 1998, taxpayers must reduce the basis of the
qualifying property to the extent the Capital Investment Tax Credit is claimed. Add back any
resulting reduction in depreciation. - Add back the qualified business income deduction under IRC Section 199A.
- Add back any charitable contribution of land deducted under IRC Section 170 unless it meets the
donative intent requirements of SC Code Section 12-6-5590. - Include any withdrawals during the tax year from a Catastrophe Savings Account that were:
- necessary because contributions were more than the allowable limits; or
- more than the amount needed to cover qualified catastrophe expenses.
Do not include any withdrawals made by the surviving spouse of the account owner.
Qualified catastrophe expenses are expenses paid or incurred because of a major disaster as
declared by the Governor.
- A business must add back any amount paid for services performed by an unauthorized alien if
the amount is $600 or more a year. - Add back any federal deductions resulting from IRC sections that South Carolina does not adopt.
Depending on how a particular item was reported or deducted, the following may be additions or
subtractions.
- A change in the accounting method to conform in the same manner and the same amount to
the federal. At the end of the federal adjustment, any balance will continue until fully adjusted. - Adjust the installment method of reporting if:
- the entire sale has been reported for state purposes, or
- the entire sale was reported for federal purposes and you wish to continue on an
installment basis for state purposes.
- Adjust the federal gain or loss to reflect any difference in the South Carolina basis and federal
basis.