Husband and I are active duty with LA home of record. Sold a house in SC when we PCSd to CA. Do we need to file a SC return?

[adelinesfolly]

We lived in the home for 7 years and it was never a rental.  Turbo tax is prompting me to file with SC but there is no tax due and no refund due.

[DanielV01 · Accepted solution]

Probably not.  You probably do not have to file a SC return.  As you state, you don't have SC tax due because any gain from the sale of home is being excluded from taxable income.  

Although you do not have to file a SC return, you still may choose to do so just so that SC also has a record of you reporting the sale and the exclusion of gain so that they don't ask you questions.  But you are probably not required to file a SC return.