topic Nonresident Withholding on Rental Sale - South Carolina in Investors & landlords

Nonresident Withholding on Rental Sale - South Carolina

air3101 — Sat, 01 Jun 2019 03:06:13 GMT

I sold a rental property I owned in South Carolina in 2016. I am no longer a resident in South Carolina and did not live in the house for 3 of the last 5 years. I have completed the questionnaire on the Federal side to determine rents and capital gains. I have applied both amounts to my South Carolina return; however, during the closing they withheld a portion of the proceeds (Form I-290 South Carolina Department of Revenue - Non Resident Real Estate Withholding). I can not find anywhere on the State Income questionnaire to input the 7% that was withheld. Can you advise where in TurboTax this should be inputted?

You enter those taxes withheld in the "Other Income Taxes...

ToddL — Sat, 01 Jun 2019 03:06:15 GMT

You enter those taxes withheld in the "Other Income Taxes" interview (see attached screenshot).

(This is where you enter state and local taxes that were withheld during 2016 but not reported on Form W-2, 1099, W-2G, etc. For example, state and local taxes that were withheld when you completed a real estate transaction).

That sounds exactly like what I'm looking for; however, I...

air3101 — Sat, 01 Jun 2019 03:06:17 GMT

That sounds exactly like what I'm looking for; however, I do not have the option of that last item.

I'm using the Turbo tax premier online. In the Federal s...

air3101 — Sat, 01 Jun 2019 03:06:19 GMT

I'm using the Turbo tax premier online. In the Federal section, I would've thought it would've been in other tax form section but it is not. In the state, I looked in the "Other situations" section and it was not there either. Any other thoughts?

"Other Income Taxes" is in Deductions and Credits section...

ToddL — Sat, 01 Jun 2019 03:06:21 GMT

"Other Income Taxes" is in Deductions and Credits section, Estimates and Other Taxes Paid. I'll attach sample screenshots from 2014 TurboTax Premier.

I found it using your screenshots! Thank you!

air3101 — Sat, 01 Jun 2019 03:06:21 GMT

I found it using your screenshots! Thank you!

Glad I could help!

ToddL — Sat, 01 Jun 2019 03:06:23 GMT

Glad I could help!

Re: You enter those taxes withheld in the "Other Income Taxes...

rpatel14 — Mon, 08 Mar 2021 21:43:43 GMT

I do not see any screen shots on this. I have same exact scenario in 2020. for MD state

Re: You enter those taxes withheld in the "Other Income Taxes...

JeffreyR77 — Tue, 09 Mar 2021 00:17:16 GMT

Your additional state withholding can be entered in TurboTax Premier in Federal Taxes, Deductions and Credits, Estimates and Other Taxes Paid, Income Taxes Paid, Other Income Taxes Paid in 2020, Withholding not already entered on a W2 or 1099:

This will automatically apply the withholding to your state return.

Re: You enter those taxes withheld in the "Other Income Taxes...

sushi_lover_100 — Sat, 16 Apr 2022 12:58:39 GMT

In TurboTax 2021, doing this automatically populates SC1040 line 16 (South Carolina Income Tax Withheld) rather than line 19 (Non-Resident Sale of Real Estate).

I'm wondering if I should leave the "Other Income Taxes Paid" area on the Federal Form blank, and just add it in the SC return "South Carolina Taxes and Credits -> Sale of Real Estate By A Non-Resident" which populated SC1040 correctly.

I can't tell of the "Other Income Taxes" section of the federal form does anything other than populate the South Carolina form.

Re: You enter those taxes withheld in the "Other Income Taxes...

sushi_lover_100 — Sat, 16 Apr 2022 12:59:16 GMT

@JeffreyR77 In TurboTax 2021, doing this automatically populates SC1040 line 16 (South Carolina Income Tax Withheld) rather than line 19 (Non-Resident Sale of Real Estate).

I can't tell of the "Other Income Taxes" section of the federal form does anything other than populate the South Carolina form.

Re: You enter those taxes withheld in the "Other Income Taxes...

GeorgeM777 — Mon, 18 Apr 2022 00:12:37 GMT

Perhaps your first option was best. If the amount in question is also entered on your federal return, then it will likely affect your federal return as well. If all you want is for the tax payment to be reflected on your SC return only, then leaving the Federal Other Income Taxes Paid blank is probably your best option.

@sushi_lover_100