topic I would like to file my south carolina state returns electronically. But, i don't see a way to attach the solar energy credit form SC SCH.TC-38. How can i do it? in State tax filing

I would like to file my south carolina state returns electronically. But, i don't see a way to attach the solar energy credit form SC SCH.TC-38. How can i do it?

nishant-jonnala — Thu, 06 Jun 2019 09:13:58 GMT

All of our platforms (online, download Windows, download...

Cindy0H — Thu, 06 Jun 2019 09:14:00 GMT

All of our platforms (online, download Windows, download Mac) support the Form SC1040TC which will include your solar credit (#38). If it is part of your South Carolina return, it will be automatically efiled with the return.

If you have other questions about this, ask in the comment section below.

You answer does not look correct. If you look at form SC...

nishant-jonnala — Thu, 06 Jun 2019 09:14:01 GMT

You answer does not look correct. If you look at form SC SCH.TC-38, there is lot of information that i need to enter and provide the details about the the solar credit that I'm receiving. For example, one of the questions asked is if the credit is a carry forward from last year. I was not asked to provide any of that information when i was using the platform on windows. Is there a way i can attach SCH TC 38 electronically?

Re: You answer does not look correct. If you look at form SC...

jbdefelice — Mon, 01 Feb 2021 19:08:57 GMT

I agree with this person above, your answer is not complete. I need SC Sch TC-38 to be included in my return so I can show carryover information for Solar Credit. Where is SC SCH TC-38?

Re: You answer does not look correct. If you look at form SC...

ErnieS0 — Mon, 01 Feb 2021 23:41:37 GMT

TurboTax does not support Form SC SCH.TC-38. Fill this form out by hand and enter the credit into TurboTax. The form is available on the South Carolina Department of Revenue website.

To enter this in TurboTax

Click State in the left column
Click Continue on Let's get your state taxes done right
Click Continue next to South Carolina
Keep going until you reach Take a look at South Carolina credits and taxes. Start South Carolina Other Nonrefundable Credits
There are several screens. Keep going until you reach Credits List: S-W. Select Solar Energy Credit. Continue
Enter the amount from SC SCH TC-38.

If filing a paper return, attach to your Income Tax return. If filing electronically, include the information from this form when you file your return. Keep a copy of the form with your tax records.

Re: You answer does not look correct. If you look at form SC...

aaronbalzano — Wed, 17 Feb 2021 09:08:18 GMT

Even when going through everything like stated and entering the correct info, it shows how much i am suppose to be refunded but does not add it to my state refund when i complete my taxes.

Re: You answer does not look correct. If you look at form SC...

ErnieS0 — Wed, 17 Feb 2021 19:29:47 GMT

The Solar Energy, Small Hydropower System, Or Geothermal Machinery and Equipment Credit (SC SCH.TC-38) is a nonrefundable refund.

That means the credit amount can only reduce your tax liability. It is not added to your refund. If your tax liability drops to zero—and there is leftover credit—the amount is not added to your refund.

Check your forms. Your credit will appear on SC1040TC. All your credits will be transferred to line 13 (Other nonrefundable credits) on Form SC1040.

Re: You answer does not look correct. If you look at form SC...

Qujeaux — Thu, 18 Feb 2021 01:05:21 GMT

I completed all the necessary info, including using the TC-38 to calculate amounts. I even attached the TC-38 in "My Documents" on TurboTax. But my SC return was rejected citing a lack of the TC-38 form. TurboTax was unable to fix the problem because they don't support the TC-38. All of this means I paid $40 to e-file something that can't be e-filed and I have to snail-mail my return anyway. I would like a refund from TurboTax because none of this was communicated prior to filing.

Re: You answer does not look correct. If you look at form SC...

LenaH — Thu, 18 Feb 2021 01:25:43 GMT

You are able to e-file your return. Per the State of South Carolina, Form TC-38 only needs to be attached to your return if you paper file. When filing electronically, you are supposed to keep a copy for your records and it is not required to be filed.

Therefore, it is possible your return was rejected because you attached an unnecessary document to your return.

For instructions and to print out a copy for your records, please see TC-38. Page 2 of the PDF form in the link attached details the South Carolina requirements as described above.

@Qujeaux

@nishant-jonnala

Re: You answer does not look correct. If you look at form SC...

Qujeaux — Thu, 18 Feb 2021 01:39:04 GMT

This is the message I get when I select review return:

I don't believe any unnecessary docs were attached. When viewing my return .pdf, there are no additional forms (including TC-38). I included the TC-38 in the "My Documents" section of TT. I don't believe TT sends those docs with the return, although I used to think they did.

Re: I would like to file my south carolina state returns electronically. But, i don't see a way t...

MaryM428 — Thu, 18 Feb 2021 02:33:04 GMT

The documents in TurboTax are just a place for you to store receipts, records, or other documents. None of those documents are sent with your tax return.

You will need to print and mail the SC return. If you remove the form and efile, then you will lose the credit for solar energy.

The credit for solar electricity and water heating, small wind energy, fuel cell, and geothermal heat pump property continues through 2021 with reductions in the credit beginning in 2020.

Re: You answer does not look correct. If you look at form SC...

ChloeT — Thu, 18 Feb 2021 16:47:51 GMT

I have the same issue in that the SC tax electronic tax filing was rejected because the TC-38 was not attached. I believe SC is in error since their instructions have always clearly stated that the form was not required in electronic filings (only paper) but retained for records. This is the third year I have filed using this credit but the first time it was rejected. I always file electronically. (Since the credit is limited but can carry over for up to 10 years, it will take me four years to recover the ITC for my solar array). The response from Turbotax was less than helpful: file by paper or don't take the credit (which is over $2K). I want to avoid filing by paper. It's been so long, I don't remember how. On a related note, in the three days since I tried to file electronically, Intuit updated the SC forms to add the $300 CARES charitable deduction back to SC income, thereby changing the tax liability and the numbers on TC-38.

Re: You answer does not look correct. If you look at form SC...

aaronbalzano — Wed, 24 Feb 2021 12:08:33 GMT

Hello Chloe,

Can you confirm the credit applied for SC is not the same as the federal credit? My federal credit actually put money back into my pocket. I am military and do not owe any taxes in south Carolina, so it seems I will not be receiving any of my tax credit for solar from SC. When adding solar to my house I was told and under the assumption that the credit for federal and state was actual money back in my pocket, not just a credit if i owed to the state.

Thanks, Aaron

Re: You answer does not look correct. If you look at form SC...

Qujeaux — Wed, 24 Feb 2021 13:33:40 GMT

@aaronbalzano

This is my second year filing the credit. Last year it did increase my SC refund, however not as much as federal. There is a stricter limit to what we can get back from SC each year. In my case, I’ll be carrying over credit for 8-10 years with the state but only 3 years with federal.

Re: You answer does not look correct. If you look at form SC...

ChloeT — Thu, 25 Feb 2021 00:52:43 GMT

Unfortunately, if you don't have to pay any taxes in SC, then you won't get any benefit from the solar tax credit. Both the SC and Federal solar credit are non-refundable tax credits, which means it can only bring your taxes owed down. This could bring your taxes down to $0 in the case of Federal tax, so if you got money back it was probably a refund of taxes withheld. The SC solar tax credit is even more limited, since it can be no more than $3500 or 50% of your tax bill, whichever is lowest (in your case, 50% of $0 is $0). Both of these can be carried forward to subsequent years if you can't take the full benefit in one year.

Re: You answer does not look correct. If you look at form SC...

pg2017 — Wed, 07 Apr 2021 21:03:24 GMT

Why are we paying a premium to use Turbotax and you don't have this form available?

Re: I would like to file my south carolina state returns electronically. But, i don't see a way to attach the solar energy credit form SC SCH.TC-38. How can i do it?

xomox0815 — Sun, 17 Oct 2021 16:28:38 GMT

WOW, it seems I'm not the only one in that situation.

First of all, I'm not a tax expert that is why I use Turbotax. In 2019 I filled form SC1040TC to for federal and state. For 2020 the amount for federal was carried over and it shows in 2019 what will carry over. I expected the same happen to state. If not I was expecting to get a message on how I have to apply and calculate my carry over in state - this wasn't the case. So there is clearly something that has to be worked on, either an explanation has to be added on how you have to file your solar tax credits for state or incorporated in the program for state in the same way as it exists for federal. I spent two hours on the phone with Turbotax "experts", even a "manager" was included in the call and after reversing my incorrect numbers on form SC1040TC in state (we just deleted form SC1040TC) they both said it is automatically applied and carried over - but it is NOT and both where NOT able to show me where it is written as a proof.

So, here is what I understood it will work for 2020:

Turbotax doesn't automatically carry over your solar tax credit for state. You have to use form SC SCH.TC-38 to manual do the calculation on this form yourself. After calculating you have to add the amount in line 10 to the form SC1040TC in your state tax. Unfortunately when I put the numbers in I wasn't able to efile anymore but was charged for (needs fixing too). So I reversed it, deleted form SC1040TC in state and efiled it without the tax credit applied. Everything worked and state accepted my file. When my refund is in the bank I have to go back to Turbotax and amend my state filling to include SC1040TC and mail it to the IRS (including all requested documents, like W2's, federal etc.) for correction.

This is far from convenient and clearly a lack in Turbotax that needs to be fixed. I hope this helps others as well. If I have this still wrong, please correct me.

Re: All of our platforms (online, download Windows, download...

xomox0815 — Sun, 17 Oct 2021 16:10:23 GMT

Cindy, this is false for state. At least nobody was able to show me the proof. Federal is carried over right but not state. You have to manually calculate your solar tax credits on form SC SCH.TC-38 and add the value from line 10 to your state form SC40TC but you loose the ability to efile.

Re: You answer does not look correct. If you look at form SC...

xomox0815 — Sun, 17 Oct 2021 16:13:46 GMT

Ernie, this is the way it work but as soon as you have the form SC40TC attached to your state Turbotax refuses to use efile, you have to send it by mail. This might be a bug in the program since 2019 I was able to do it.

Re: You answer does not look correct. If you look at form SC...

xomox0815 — Sun, 17 Oct 2021 16:25:33 GMT

Aaron, please read my last post on page 2 this explains what I thing is happen for 2020. In general, the federal will be automatically carry over but not the state, ad least not automatically for 2020 (I put my solar up in 2019). Beside automatic calculation in Turbotax or by hand using form SC SCH.TC-38, this year I wasn't able to attach form SC1040TC to my return for efiling. Turbotax told me I have to send my state return by mail.