SC1040TC: Individual Tax Credits (2024)
South Carolina · South Carolina DOR · Used for tax years 2024
South Carolina Form SC1040TC reports nonrefundable tax credits claimed with a 2024 individual, fiduciary, or partnership income tax return. It totals the credits and limits the amount claimed to the South Carolina tax shown on the return. It also includes a worksheet for the cred
Who files this form
Use the 2024 SC1040TC to report the nonrefundable tax credits you claim with your South Carolina SC1040, SC1041, or SC1065 return.
The credit for taxes paid to another state is available only to South Carolina residents and part-year residents who paid income tax to both South Carolina and another state on the same income. You must have filed a return with the other state and had a tax liability there. Partnerships cannot claim this credit.
When it's due
The text does not give a return filing deadline. For credits reported on the tax year 2024 form, it lists these eligibility cutoffs:
- Retail Facilities Revitalization Credit: The credit has expired and is available only if the Notice of Intent and building permits were issued before July 1, 2016.
- Renewable Fuel Facility Credit: Property must have been placed in service before January 1, 2023.
- Energy Efficient Manufactured Home Credit: The credit has expired and is available only to taxpayers who qualified before July 2, 2024.
- Clean Energy Credit: The credit has expired and is available only to taxpayers who qualified before December 31, 2020.
What you'll need
- Your completed SC1040TC and the required tax credit schedules for the credits you claim. Most credits are calculated on separate schedules.
- For SC1040 filers, a complete copy of your federal return.
- If claiming credit for taxes paid to another state, a separate SC1040TC Worksheet for each state and a copy of each other state's tax return.
- If claiming the Railroad Expenditures Credit, a copy of the Tax Credit Certificate issued by the South Carolina Department of Commerce.
Individual taxpayers must provide their Social Security Number on the form.
How to file
Include SC1040TC and the required credit schedules with your income tax return:
- SC1040 filers: Include a complete copy of your federal return. If claiming credit for taxes paid to another state, also include all state credit worksheets and copies of the other states' returns.
- SC1041 or SC1065 filers: Include SC1040TC with your SC1041 or SC1065.
For lines 6 through 15, enter the credit description, code, and amount. Add lines 1 through 15 on line 16. Enter your South Carolina tax on line 17, then enter the smaller of lines 16 and 17 on line 18.
Transfer line 18 to SC1040 line 13, SC1041 line 10, or SC1065 line 4, as applicable.
The supplied text does not give a mailing address or e-filing directions for SC1040TC.
Common mistakes
- Leaving out required schedules. SCDOR may disallow credits if the necessary schedules are not attached.
- Using W-2 withholding as the other state's tax. Use the applicable tax liability after tax credits, not the withholding shown on your W-2.
- Including income that was not taxed by both states. The other-state credit worksheet's line 2 includes only income taxed by both South Carolina and the other state.
- Combining states on one worksheet. Complete a separate worksheet for each state.
- Entering a worksheet percentage above 100%. Round line 3 to two decimal places and do not exceed 100%.
- Claiming certain credits without pre-approval. The Angel Investor, Solar Energy Property, and Clean Energy credits require an application and pre-approval before claiming them.
Questions people ask
How much credit can I claim for taxes paid to another state?
The credit is limited to the smaller of the South Carolina tax or the other state's tax on income taxed by both states. Use a separate worksheet for each state, then add the amounts on line 7 of all worksheets and enter the total on SC1040TC line 1.
What if the other state later refunds or credits the tax?
If the other state refunds or credits part of the tax that generated this credit, you must file an amended return and repay SCDOR within 60 days of receiving the refund or notice of the credit.
How do I claim unused credits carried forward from earlier years?
Use the applicable tax credit schedule to calculate and claim the carryforward. Current versions of the schedules have a line for unused credit carryforward amounts.
Does every credit have a separate form?
No. Most credits use separate schedules, but the Nursing Home Credit has no separate form.