SC1065: Partnership Return (2025)

South Carolina · South Carolina DOR · Used for tax years 2025

Form SC1065 is South Carolina’s 2025 Partnership Return. It reports South Carolina business income, income taxable to partners, active trade or business income tax, nonresident withholding, credits, payments, and any refund or balance due.

Who files this form

Every domestic or foreign partnership doing business or owning property in South Carolina must file SC1065. This includes a multiple-member LLC that is not taxed as a corporation.

Each partner must include their share of the partnership's net income or loss on their own return, whether or not it was distributed.

When it's due

  • 2025 SC1065 filing and payment: File the return and pay all taxes due by the 15th day of the third month following the end of the partnership's taxable year.
  • 2025 nonresident withholding statements: By the same deadline, provide each nonresident partner with a federal 1099-MISC marked “SC Only,” showing income and tax withheld.
  • Extensions for the 2025 return: A filing extension does not extend the time to pay. Pay any Withholding and Income Tax by the original due date to avoid late penalties and interest.

What you'll need

Prepare or gather:

  • A complete copy of your federal return to attach.
  • Schedule SC-K and an SC1065 K-1 for every partner. Attach each K-1 to the return and give a copy to the partner.
  • The partnership's name, address, FEIN, county code, and partner counts.
  • Records of extension and estimated tax payments.

Depending on your situation, also include:

  • Entity-level tax election: I-435 to identify active trade or business income and calculate the tax.
  • Nonrefundable tax credits: SC1040TC and the specific credit schedules.
  • Tax withheld claimed on line 11: Supporting I-290 or 1099-MISC.
  • Nonresident partners: A schedule showing each partner's name, address, tax identification number, South Carolina taxable income, and tax withheld. Include any I-309 affidavits, I-338 Composite Return Affidavits, or tax-exempt partner statements not previously filed with SCDOR.
  • Direct deposit: Your account type, routing number, and account number for a US account.

How to file

  1. Complete Schedule SC-K and the SC1065 K-1s before completing SC1065.
  2. Complete the return, attach the required documents, and have a partner sign it.
  3. File electronically or mail the paper return as described below.

Electronic filing: You can file SC1065 and your federal partnership return together in a single electronic transmission. Visit dor.sc.gov/biz-services for electronic filing options. If you owe $15,000 or more on any SCDOR return, you must file and pay electronically.

Mail a return with a balance due to:

SCDOR

Taxable Partnership

PO Box 125

Columbia, SC 29214-0036

Mail a zero-tax return to:

SCDOR

Nontaxable Partnership

PO Box 125

Columbia, SC 29214-0037

Payment: Pay through MyDORWAY at dor.sc.gov/pay. Select “Business Income Tax Payment” and use your FEIN. If paying by check, include the partnership's name, FEIN, tax year, and “SC1065” in the memo and attach the check to the paper return. Do not send cash.

Common mistakes

  • Treating a filing extension as extra time to pay. There is no extension of time to pay tax.
  • Forgetting election or extension boxes. Mark the extension box if you filed a federal or state extension. If making the Active Trade or Business election, mark the box on SC1065 and on every partner's SC1065 K-1.
  • Using credits against nonresident withholding. Nonrefundable credits cannot reduce the nonresident withholding tax due.
  • Amending to reduce withholding already reported to partners. You cannot amend the partnership return to decrease withholding shown on the SC1065 K-1s provided to partners.
  • Using the wrong composite extension form. Use SC4868, not SC8736, to extend a composite return, and mark the “Composite Filer” box.
  • Entering incomplete or incorrect bank information. SCDOR will mail a paper refund 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

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.” The payment automatically submits your filing extension request, with no additional paperwork. To request an extension by mail, use SC8736. If no tax is due and you requested a federal extension, South Carolina accepts it if SCDOR receives your partnership return within the IRS-extended time. An extension does not give you more time to pay.

Must the partnership withhold tax for nonresident partners?

Generally, partnerships must withhold 5% of nonresident partners' South Carolina taxable income. Withholding is not required for partners who provide an I-309 affidavit, are included on a composite Individual Income Tax return, or are tax exempt under IRC 501(a). Active trade or business income taxed at the partnership level is also exempt from nonresident withholding.

Can the partnership pay tax on active trade or business income at the entity level?

A qualifying partnership can make this election annually on SC1065 on behalf of all partners. Mark the election box on page 1 and use I-435 to identify the income and calculate the tax. Report each partner's share of that income on SC1065 K-1.

What if the IRS adjusts the partnership's federal return?

Amend SC1065 whenever the IRS adjusts your federal Form 1065. Mark the “Amended return” box.

Official sources

All versions of SC1065