I contacted the SC Department of Revenue and they said the following: " We did make a change on the SC1120S to include lines 1-12 from the federal Schedule K instead of lines 1-10. This was to help simplify the active trade or business income calculation for taxpayers making that election. So the 179 deduction would be included as a deduction, so it should decrease your income."
I believe the TurboTax calculation for line 1 of the South Carolian 1120S is adding Line 11 of the Federal Return on Schedule K instead of deducting the amount in Line 11 of the Federal Return to get the amount on Line 1 of the South Carolina 1120S. This results in the income for the SC return on Line 1 being double what it should be by the amount of the Section 179. Any guidance would be appreciated. Thank you!
