Most South Carolina taxpayers only need to pay the income tax calculated on their return. However, some taxpayers may also be required to report additional taxes depending on their individual tax situation.
If any of these taxes apply to you, they must be included on your South Carolina return and may increase the total amount of tax owed.
What Additional Taxes May Apply?
The South Carolina Additional Taxes section may include:
- Use Tax
- Tax on Active Trade or Business Income
- Tax on Excess Withdrawals from Catastrophe Savings Accounts
- Penalties and Interest
Not every taxpayer will need to complete these sections. Only enter information for the taxes that apply to your situation.
Use Tax
South Carolina Use Tax may apply when you purchase taxable items for use, storage, or consumption in South Carolina and no South Carolina Sales Tax was collected at the time of purchase.
Common examples include:
- Online purchases from out-of-state retailers
- Purchases made while traveling outside South Carolina
- Mail-order or catalog purchases
- Items purchased from sellers who did not collect South Carolina Sales Tax
If Sales Tax was not collected, you may be responsible for reporting and paying Use Tax on your South Carolina return.
Tax on Active Trade or Business Income
South Carolina allows certain taxpayers to elect a reduced tax rate on qualifying active trade or business income received from pass-through entities.
Qualifying businesses may include:
- Sole proprietorships
- Partnerships
- S corporations
- Certain LLCs
Taxpayers making this election must complete South Carolina Form I-335 to determine the amount of qualifying income and calculate the tax.
Because this election is optional, taxpayers can decide each year whether it is beneficial based on their specific tax situation.
Tax on Excess Withdrawals from Catastrophe Savings Accounts
South Carolina permits eligible taxpayers to establish Catastrophe Savings Accounts to save for qualified catastrophe-related expenses.
If funds are withdrawn and used for purposes other than qualified expenses, the withdrawal may be subject to additional South Carolina tax.
If you received a distribution from a Catastrophe Savings Account during the tax year, review your records carefully to determine whether any portion of the withdrawal is taxable.
Penalties and Interest
Penalties and interest may apply when:
- Taxes are paid after the due date
- A return is filed late
- Required estimated tax payments were not made
- Additional tax is assessed by the South Carolina Department of Revenue
If you received a notice from the South Carolina Department of Revenue showing penalties or interest due, enter the amount indicated on the notice.
How Do I Enter Additional Taxes in TaxSlayer?
To enter South Carolina Additional Taxes in TaxSlayer:
- From the State Section, select Additional Taxes.
- Choose the tax type that applies to your situation.
- Complete the required entries.
- Continue through the South Carolina return.
TaxSlayer will automatically include any applicable additional taxes when calculating your South Carolina balance due or refund.
Additional Information
Most taxpayers will not need to complete every section in the Additional Taxes menu. If one of these situations applies to you, review the applicable South Carolina forms, instructions, and supporting documentation before entering the information on your return.
If no additional taxes apply, you can continue through your South Carolina return without making any entries in this section.
For additional information please see our KB articles:
What is South Carolina's Tax on Active Trade/Business Income?