SC1041: Fiduciary Income Tax Return (2024)
South Carolina · South Carolina DOR · Used for tax years 2024
Form SC1041 is South Carolina's fiduciary income tax return for estates and trusts. It reports taxable income, South Carolina adjustments, tax, credits, payments, and any balance due or refund, along with income and withholding information for nonresident beneficiaries.
Who files this form
The fiduciary of a resident estate or trust must file SC1041 if the estate or trust:
- Is required to file a federal Fiduciary Income Tax return for the taxable year.
- Had any South Carolina taxable income for the taxable year.
- Had a nonresident beneficiary.
The fiduciary of a nonresident estate or trust must file if the estate or trust had income or gain from South Carolina sources. This includes South Carolina real or tangible personal property, a business or occupation carried on in the state, or services performed in the state.
A resident estate is the estate of someone who lived in South Carolina at death. A resident trust is a trust administered in South Carolina. All other estates and trusts are nonresident.
A trust exempt from federal Income Tax because of its purpose or activities is also exempt from South Carolina Income Tax.
When it's due
For tax year 2024, SC1041 is due by the 15th day of the fourth month after the close of the taxable year.
Request any filing extension by the return's due date. Late filing may result in a penalty, and late payment may result in penalty and interest.
For tax year 2024, any I-41 affidavits must be attached to SC1041 or SC8736 by the 15th day of the fourth month following the close of the estate's or trust's tax year.
What you'll need
- Federal return: Attach a copy of federal Form 1041 as filed with the IRS, including all schedules and Schedules K-1. If a federal Schedule K-1 is not attached for each beneficiary, attach an explanation.
- Identifying information: Have the estate's or trust's name, address, FEIN and county code, plus the fiduciary's name and title. Beneficiary information includes names, SSNs or FEINs, and residency status.
- Payment records: Gather extension payments, South Carolina withholding, estimated payments and amounts applied from the prior year's return. Attach W-2s or 1099s supporting withholding reported on line 14b.
- Adjustment schedules: Attach explanations or schedules for applicable income modifications and fiduciary adjustments.
- Other forms, when applicable: SC1040TC and appropriate credit forms, SC4972, I-335, SC2210, and I-41 affidavits.
- Special attachments: Attach the federal extension if relying on it. For an amended return reporting an IRS adjustment, attach the IRS revenue agent's report.
- Direct deposit details: Have the account type, routing number and account number for a US bank account.
How to file
Electronic filing: You can file SC1041 and the federal fiduciary return together through Modernized Electronic Filing (MeF) using third-party tax preparation software. If you owe $15,000 or more in connection with any SCDOR return, you must file and pay electronically.
Paper filing: The fiduciary must sign the return. Include the required attachments and mail it to the appropriate address:
- Balance due: SCDOR, Taxable Fiduciary, PO Box 125, Columbia, SC 29214-0038.
- Refund or zero tax: SCDOR, Nontaxable Fiduciary, PO Box 125, Columbia, SC 29214-0039.
Payment: Pay through MyDORWAY at dor.sc.gov/pay and select Business Income Tax Payment, or attach a check to SC1041. Put the estate's or trust's name, FEIN, SC1041 and tax year in the check memo. Do not send cash.
Extension request: Paying your balance due through MyDORWAY automatically submits a filing extension request. You can also file paper Form SC8736, available at dor.sc.gov/forms. Mark the Extension Requested box on SC1041.
Common mistakes
- Leaving out the federal return: Failure to attach federal Form 1041 and all schedules will delay processing.
- Missing required add-backs: Add back the federal qualified business income deduction under IRC Section 199A. Also add back a charitable deduction for a gift of land under IRC Section 170 unless the donor's intent meets SC Code Section 12-6-5590.
- Using federal bonus depreciation for South Carolina: South Carolina does not recognize IRC Section 168(k) bonus depreciation.
- Not amending after an IRS adjustment: An amended SC1041 must be filed whenever the IRS adjusts federal Form 1041.
- Entering incomplete or incorrect direct deposit details: SCDOR will mail a paper check instead. Do not use a deposit slip to verify the routing number, and do not include hyphens, spaces, special symbols or the check number in the bank account number.
Questions people ask
Can I use a federal extension instead of SC8736?
Yes, if the South Carolina return has no balance due when filed. You do not need to send the federal extension separately. Attach it when filing SC1041 within the extended period and mark the Extension Requested box.
Can I apply my refund to next year's estimated tax?
Yes. Enter the amount on line 21 of the 2024 SC1041 to apply it to 2025 Estimated Tax.
Must the estate or trust withhold tax for nonresident beneficiaries?
Generally, it must withhold on each nonresident beneficiary's share of South Carolina-source income. Withholding is not required for a beneficiary who submits an I-41 affidavit agreeing to file returns and pay applicable taxes. The estate or trust must send the affidavit to SCDOR.
Does the estate or trust need to make estimated tax payments?
Generally, a fiduciary must file a Declaration of Estimated Tax if the expected tax owed when the return is filed is $100 or more. Estates are not required to file a declaration for the first two tax years after the decedent's death.