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Best answer by DanielV01

This is how South Carolina calculates their taxable income.  Whereas the Federal Return begins with "Adjusted Gross Income" (all of the income minus certain deductions), South Carolina starts its return with Federally Taxable Income.  Then, on top of that, it subtracts it's allowable deductions, lowering the amount further.  You may see a rather extensive list of these subtractions on the tax form:  SC1040 (click on link), and look through lines f-v.  If any of those deductions apply to you, that will be why South Carolina's taxable income is lower than the Federal.

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DanielV01
DanielV01Answer
Level 15
June 1, 2019

This is how South Carolina calculates their taxable income.  Whereas the Federal Return begins with "Adjusted Gross Income" (all of the income minus certain deductions), South Carolina starts its return with Federally Taxable Income.  Then, on top of that, it subtracts it's allowable deductions, lowering the amount further.  You may see a rather extensive list of these subtractions on the tax form:  SC1040 (click on link), and look through lines f-v.  If any of those deductions apply to you, that will be why South Carolina's taxable income is lower than the Federal.

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