South Carolina does have a standard deduction which is prorated for nonresidents. If your prorated SC income was less than your prorated SC standard deduction, you would owe no tax, and that sounds like what has occurred. The math that TurboTax does in the background is explained below, but according to the South Carolina guidelines, you should file a nonresident SC return, even if there is no tax due. SC - Dept. Of Revenue filing requirements.
SC Part-year and nonresidents compute tax based on AGI from South Carolina sources, which includes all items of AGI received while a South Carolina resident and all items received from South Carolina sources while a nonresident. South Carolina AGI is then modified by South Carolina additions and subtractions. The standard deduction, itemized deductions, personal exemptions and dependent exemptions must be prorated by a ratio of South Carolina AGI to federal AGI. To calculate taxable income, deduct the prorated South Carolina standard or itemized deduction.
South Carolina proration is calculated by dividing South Carolina AGI by federal AGI. Round the decimal to two places. The ratio cannot exceed 100%. The ratio is applied to the standard deduction and itemized deductions. TurboTax does all of this on Schedule NR.
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