South Carolina Additions to Federal Taxable Income
When my federal information was transferred to my South Carolina return it added back a large amount to additions to Federal Taxable income line 1e. Looking at the state income tax instructions - it states that an explanation needs to be attached. I looked through all of the supplemental schedules for Turbo Tax and can not determine what is being calculated. According to SC - Attach an explanation of your entry for this line.
Where is the supplemental schedule or explanation to supply to SC?
Below are some examples of items to enter on this line which are not applicable to me:
● Taxpayers who claim bonus depreciation under federal law must add back the difference
between the bonus depreciation taken and the depreciation which would have been allowed
without bonus depreciation.
● Taxpayers who claim a nonrefundable credit for contributions to Exceptional SC (TC-57) are not
allowed a deduction for these contributions. Add back the amount of the contribution deducted
on the federal return
● Taxpayers who claim a child care program credit for donations to a nonprofit corporation (TC-9)
are not allowed a deduction for those donations. Add back the donation deducted on the federal
return
● Taxpayers who claim credits such as the Community Development Credit (TC-14), the Industry
Partnership Fund Credit (TC-36), and the Credit for Child Care Program (TC-9) may not claim a
deduction for the same qualified contribution which results in the credit. Add back the amount
deducted on the federal return.
● Add back the federal net operating loss when it is larger than the South Carolina net operating
loss being claimed.
● Add back any expenses deducted on the federal return related to any income not taxed by South
Carolina. Some examples are investment interest to out-of-state partnerships and interest paid
to purchase US obligations.
● Add back foreign area allowances, cost of living allowances, and income from US possessions.
● For qualifying investments made after June 30, 1998, taxpayers must reduce the basis of the
qualifying property to the extent the Capital Investment Tax Credit is claimed. Add back any
resulting reduction in depreciation.
● Add back the qualified business income deduction under IRC Section 199A.
● Add back any charitable contribution of land deducted under IRC Section 170 unless it meets the
donative intent requirements of SC Code Section 12-6-5590.
● Include any withdrawals during the tax year from a Catastrophe Savings Account that were:
● A business must add back any amount paid for services performed by an unauthorized alien if
the amount is $600 or more a year.
● Add back any federal deductions resulting from IRC sections that South Carolina does not adopt. MAYBE THIS ONE
