SC SCH TC 44: Excess Insurance Premium Credit (Revision 2019-07)

Who files this form

SC SCH.TC-44 is used to claim the Excess Insurance Premium Credit. The credit is available to individuals who paid property and casualty insurance premiums for their legal residence during the tax year that exceed 5% of their federal Adjusted Gross Income (AGI).

The form also includes a line for unused credit carried forward from previous tax years.

What you'll need

Have the following information available to complete the form:

• Your name and Social Security Number.
• Property and casualty insurance premiums paid during the tax year for your legal residence.
• Your federal AGI.
• Any credit carried forward from previous tax years.
• Your current tax year liability after applying all other credits.

You will also enter the credit you can use this year on the applicable line of SC1040TC.

How to file

1. Enter your qualifying insurance premiums and federal AGI. Multiply your AGI by 5%, then subtract that amount from the premiums.
2. Enter the lesser of that result and the $1,250 maximum allowable credit on line 6.
3. Add any credit carried forward from previous tax years.
4. Compare that total with your current tax year liability after all other credits. Enter the lesser amount on line 10 and on the applicable line of SC1040TC.
5. Subtract line 10 from line 8 to determine the unused credit. Unused credits can be carried forward for five tax years.

Paper filing: Attach this schedule to your Income Tax return.

Electronic filing: Keep a copy with your tax records.

Common mistakes

• Do not leave out your Social Security Number. The form states that individual taxpayers must provide it.
• Do not forget to attach this schedule to your Income Tax return if you file by paper.
• If you file electronically, remember to keep a copy with your tax records.

Questions people ask

Which insurance premiums qualify?

The credit applies to property and casualty insurance premiums paid during the tax year for your legal residence, to the extent they exceed 5% of your federal AGI.

What is the maximum allowable credit for one tax year?

Line 5 lists a maximum allowable credit of $1,250. Line 6 takes the lesser of this maximum and the premiums remaining after subtracting 5% of your federal AGI.

How much credit can I use on this year's return?

You can use the lesser of your line 8 total, which includes carryforwards, and your current tax year liability after applying all other credits. Enter that amount on line 10 and on the applicable line of SC1040TC.

Can I carry forward unused credit?

Yes. Unused credit may be carried forward for five tax years.

Official sources

• https://dor.sc.gov/sites/dor/files/forms/TC44.pdf