SC1040TC: Individual Tax Credits (2025)
South Carolina · South Carolina DOR · Used for tax years 2025
South Carolina Form SC1040TC reports your 2025 nonrefundable tax credits and calculates the amount to enter on your SC1040, SC1041, or SC1065 return. It also includes a worksheet for calculating the credit for taxes paid to another state.
Who files this form
Use the 2025 SC1040TC to report tax credits claimed with your South Carolina Income Tax return. The form includes directions for individuals filing SC1040, fiduciaries filing SC1041, and partnerships filing SC1065.
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 states 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.
What you'll need
- Your completed SC1040TC, including your name and Social Security Number. Individual taxpayers must provide their Social Security Number.
- The required tax credit schedules for every credit you claim. Most credits are calculated on separate schedules.
- For SC1040 filers, a complete copy of your federal return.
- If claiming the 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.
How to file
- Calculate your credits using the required credit schedules. For lines 6 through 15, enter each credit's description, code, and dollar amount.
- Add lines 1 through 15 and enter the total nonrefundable credits on line 16.
- Enter your South Carolina tax on line 17, using SC1040 line 10, SC1065 line 3, or SC1041 lines 8 and 9.
- On line 18, enter the smaller of line 16 or line 17. Transfer that amount to SC1040 line 13, SC1041 line 10, or SC1065 line 4, as applicable.
- Include SC1040TC and the required schedules with your Income Tax return. SC1040 filers must also include a complete federal return copy and, when claiming credit for taxes paid to another state, the worksheets and other states' return copies.
Common mistakes
- Leaving out required schedules. The SCDOR may disallow credits if the necessary schedules are not attached.
- Using W-2 withholding as the other state's tax. Use the other state's tax liability after tax credits, limited to the portion based on income taxed by both states.
- Including income not taxed by both states. On line 2 of the other-state credit worksheet, include only income taxed by both South Carolina and the other state.
- Combining states on one worksheet. Complete a separate worksheet for each state.
- Entering an incorrect percentage. Round worksheet line 3 to two decimal places and do not enter more than 100%.
- Skipping required pre-approval. The Angel Investor Credit requires an application through MyDORWAY and pre-approval. The Solar Energy Property Credit requires filing TC-58A and receiving pre-approval before claiming it.
Questions people ask
Can the credits on this form exceed my South Carolina tax?
The amount entered on line 18 is limited to the smaller of your total nonrefundable credits on line 16 or your South Carolina tax on line 17.
What if I paid tax to more than one other state?
Complete a separate SC1040TC Worksheet for each state. Add line 7 from all worksheets and enter the total on SC1040TC line 1.
What if another state later refunds tax used to calculate my credit?
You must file an amended return and repay the SCDOR within 60 days of receiving the refund or notice of the credit from the other state.
How do I claim unused credits carried forward from prior years?
Use the applicable tax credit schedule to calculate and claim the carryforward. Current schedules have a line for unused credit carryforward amounts. The credit list identifies carryovers of unused qualified credits with code 101.