Might work, but that is not the proper way to do it with the software. Your way would have it in line 3v, and none of the "Other" subtractions described in the SC1040 instructions list SC bond interest as one of the "Other" subtractions that belong on that line. Anything else could prompt an SC audit, or letter requesting more information as to why you didn't take it out of line 1d to begin with.
https://dor.sc.gov/forms-site/Forms/SC1040Instr_2018.pdf
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Mutual funds report their state totals in box 11 of the 1099-DIV....and then, in the software, you specify the SC-only sub-portion as I noted in my response above. When done properly that way, then only the non-SC bond interest will show up as an addition on line 1d of the SC1040.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
