SC SCH TC 29: Qualified Retirement Plan Contribution Credit (Revision 2023-03)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-29 calculates the Qualified Retirement Plan Contribution Credit for retirement contributions previously taxed by another state. It reports those contributions, the taxes paid, and the annual and lifetime credit limits.
Who files this form
Use SC SCH.TC-29 to claim this credit if both apply:
- You lived in another state that taxed your contributions when you made them to a qualified retirement plan.
- You are now a South Carolina resident reporting that retirement income and claiming the retirement deduction.
The plan must qualify under IRC Sections 401, 403, 408, or 457, including military retirement and federal, state, and local government employee retirement plans. You must have become vested in the plan while living in the other state.
You are not eligible for this credit as a South Carolina resident making retirement plan contributions in the current tax year.
What you'll need
Have the following information available to complete the form:
- Your name and Social Security Number. Individual taxpayers must provide their Social Security Number.
- The total qualified retirement plan contributions taxed by the other state and the total taxes paid to that state on those contributions.
- Your life expectancy from Appendix B of IRS Publication 590-B, available at irs.gov, based on your age when you first claimed the South Carolina retirement deduction.
- South Carolina's top marginal Individual Income Tax rate for the year the contributions were made. The form points to SC Code Section 12-6-510 at dor.sc.gov/policy for rate information.
How to file
- Paper return: Attach SC SCH.TC-29 to your Income Tax return.
- Electronic return: Keep a copy of SC SCH.TC-29 with your tax records.
The form does not provide a mailing address.
Common mistakes
- Exceeding the lifetime limit: The total credit claimed over your lifetime cannot exceed line 6, which is the smaller of line 2 and line 5.
- Using the wrong year's tax rate: Use South Carolina's top marginal rate for the year the contributions were made, not automatically the year you claim the credit.
- Using the wrong age for life expectancy: Use your age when you first claimed the South Carolina retirement deduction.
- Forgetting the form or your copy: Attach the form to a paper Income Tax return. If filing electronically, keep a copy with your tax records.
- Leaving out your Social Security Number: Providing it is mandatory for individual taxpayers.
Questions people ask
How is the annual credit calculated?
Divide the taxes paid to the other state on the qualifying contributions, shown on line 2, by the life expectancy shown on line 3. Enter the result on line 4.
Where do I find the life expectancy figure?
Use Appendix B of IRS Publication 590-B, available at irs.gov. Use your age when you first claimed the South Carolina retirement deduction on line p of your SC1040.
What is the lifetime credit limit?
Line 6 is the smaller of the taxes paid to the other state on line 2 and the South Carolina credit limit on line 5. Calculate line 5 by multiplying the contributions on line 1 by South Carolina's top marginal Individual Income Tax rate for the year the contributions were made. Your lifetime credits cannot exceed line 6.
Can military or government retirement plans qualify?
Yes. The form includes military retirement and public employee retirement plans of federal, state, and local governments. You must also meet the other eligibility requirements, including becoming vested in the plan while living in the other state.