I AM IN THE ARMED FORCES. WHAT IS MY RESIDENCY STATUS?
South Carolina Resident:
If you enter the armed forces when you are a South Carolina resident, you do not lose your South Carolina residency status, even if you are absent from this state on military orders. You are subject to the same residency requirements as any other South Carolina resident and are required to file a South Carolina income tax return.
South Carolina Nonresident:
If you are not a South Carolina resident but are stationed in this state by military orders, your military income is not subject to South Carolina tax. However, if you have other earned income subject to South Carolina tax, file SC1040 with Schedule NR. South Carolina DOES tax other income earned in this state by you or your spouse.
NATIONAL GUARD and RESERVE ANNUAL TRAINING and DRILL PAY
The amount of income received for weekend drills and customary training periods when serving in the military reserves or National Guard should be subtracted. Generally, the customary training period is one weekend a month and two weeks per year of active duty. Enter the amount on this line. Income for active duty or full-time reserves is not tax exempt and should not be included on this line. Do not include Military Reserve and National Guard pay which is included in retirement income on this line.
MILITARY EXTENSION OF TIME FOR CLAIMING TUITION
TAX CREDIT - For qualifying students required to withdraw from a qualifying institution to serve on active military duty on or after January 1, 2000, the time allowed to qualify for the tuition tax credit (I-319), four years after the date of enrollment in an eligible institution, is suspended if a qualifying student is required to withdraw in order to serve on active military duty, if the service member re-enrolls in an eligible institution within 12 months after demobilization and provides official documentation from the Armed Forces to verify the dates of active duty military service.