You need to allocate income to SC, probably manually on a PY grid in the state software, because income isn't necessarily even throughout the year. Check with your software support re entering income/deductions for a part-year return. SC is very generous re retirement income, but normal wages and certain investment income and K-1 income will be taxed similar to the federal and many states. If December was a profitable month for your client, he'll owe SC some tax.
Do you have Schedule NR in the SC return to show $$$ from Federal return in one column and $$$ for SC in the second column?
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You need to allocate income to SC, probably manually on a PY grid in the state software, because income isn't necessarily even throughout the year. Check with your software support re entering income/deductions for a part-year return. SC is very generous re retirement income, but normal wages and certain investment income and K-1 income will be taxed similar to the federal and many states. If December was a profitable month for your client, he'll owe SC some tax.
Do you have Schedule NR in the SC return to show $$$ from Federal return in one column and $$$ for SC in the second column?Leave a comment:
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There should be a SC fprm where you allocate INCOME, namely one column shows SC income and other column shows everywhere else. The fact that FL was involved should not change that income allocation. The issue for income tax paid to another state only comes into play if A SC RESIDENT pays income tax to another state and may get a credit for income taxed in both states.Leave a comment:
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I have entered all the dates; however, it still comes up taxable.
I figure it's because there is no state tax in Florida.Leave a comment:
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Taxpayer will file a part-year SC personal return to report his income from 12/4/2025 through 12/31/2025. Similar for the S Corp.
However, the S Corp probably will have other issues: is it still a FL corporation and must register as a foreign (out of SC) corporation doing business in SC, or did it register in SC (and maybe dissolve in FL/create a new corporation)? Does it need other registrations, such as Sales Tax? Depending on the profits involved, it might be worth an hour or two consultation with a SC business attorney to get the S Corp set up correctly in SC. Some states have SotS and DRS staffers who are knowledgeable and helpful to tax preparers &/or new resident DIYers. Start on the SC website.
I've had multiple clients move to/retire to SC from CT, but no corporations.Leave a comment:
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Question for SC Preparer
Taxpayer moved to South Carolina from Florida on 12/4/25.
Do S Corp pay taxes in South Carolina and if so, do they tax the entire amount?
The same issue for the personal return.
Florida does not pay state tax.
Thanks for your help
Brian
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