SC1041: Fiduciary Income Tax Return (2025)
South Carolina · South Carolina DOR · Used for tax years 2025
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, with sections for beneficiary allocations and nonresident beneficiary withholding.
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 profession carried on in South Carolina, or services performed in South Carolina.
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 nonresidents.
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 2025, 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.
If using I-41 affidavits for nonresident beneficiaries, attach them to SC1041 or SC8736 by the 15th day of the fourth month following the close of the estate's or trust's tax year.
Late filing may result in a penalty. Late payment may result in penalty and interest.
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 beneficiary names and SSNs or FEINs.
- Adjustment schedules: Attach explanations or schedules for applicable South Carolina income adjustments and allocations.
- Credits and additional taxes: Include SC1040TC and applicable credit forms, SC4972 for applicable lump-sum distributions, and I-335 if filing it.
- Withholding: Attach copies of W-2s or 1099s for withholding claimed on line 14b. Prepare SC41 for each nonresident beneficiary whose tax is withheld, and submit applicable I-41 affidavits.
- Other applicable attachments: Include SC2210 for underpaid estimated tax, a federal extension copy if relying on that extension, or the IRS revenue agent's report when amending for federal adjustments.
- Direct deposit: Have the checking or savings account information for a US bank account.
How to file
E-file: File SC1041 and the federal fiduciary return together through Modernized Electronic Filing (MeF). See dor.sc.gov/biz-services for information about supported filing services.
File by mail:
- Balance due returns: SCDOR, Taxable Fiduciary, PO Box 125, Columbia, SC 29214-0038.
- Refund or zero tax returns: SCDOR, Nontaxable Fiduciary, PO Box 125, Columbia, SC 29214-0039.
The fiduciary must sign the return. Attach the federal return and all required schedules.
Pay: Use MyDORWAY at dor.sc.gov/pay and select Business Income Tax Payment, or attach a check to SC1041. In the check memo, include the estate's or trust's name and FEIN, SC1041, and the tax year. Do not send cash.
If you owe $15,000 or more in connection with any SCDOR return, you must file and pay electronically.
Common mistakes
- Leaving out the federal return. Failure to attach the federal fiduciary return 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. South Carolina does not recognize IRC Section 168(k) bonus depreciation.
- Not amending after an IRS adjustment. An amended SC1041 is required whenever the IRS adjusts federal Form 1041.
- Entering incomplete or incorrect direct deposit details. This results in a paper refund check. 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.
- Sending cash. The payment instructions specifically say not to send cash.
Questions people ask
How do I request more time to file?
Pay your balance due through MyDORWAY at dor.sc.gov/pay and select Business Income Tax Payment. That payment automatically submits a filing extension request, with no additional paperwork. You can also file paper Form SC8736.
Can I use a federal extension?
Yes, if the South Carolina return has no balance due when filed. You do not need to send the federal extension separately. Attach a copy when filing SC1041 within the extended period and mark the Extension Requested box on page 1.
Can I apply my refund to next year's estimated tax?
Yes. On the 2025 SC1041, enter the amount you want credited to 2026 estimated tax on line 21.
Must tax be withheld for nonresident beneficiaries?
Estates and trusts must withhold on each nonresident beneficiary's share of South Carolina-source income at South Carolina's top marginal Individual Income Tax rate for the tax year. Withholding is not required for a beneficiary who submits Form I-41 and agrees to file returns and pay applicable taxes. The estate or trust must submit those affidavits to SCDOR.
What must I do if the IRS changes the federal return?
After the federal adjustments become final, file an amended SC1041 for the affected tax year. Attach the IRS revenue agent's report showing the adjustments and mark the Amended return box on page 1.