1099-NEC from SC

[J_Liu]

I received an 1099-NEC from SC for a total of $2,000 for my side job. While I live out side of SC, I was confused whether I need to fill with SC. I downloaded the additional state of SC, the filing shows up as $0, and even though I have entered my 1099-NEC with the Payer info, the $2,000 income does not show anywhere in the SC filing form. My Federal AGI is more than the minimal, so I was expecting to pay some tax. Now I am afraid that I am not doing it correctly. 

[DavidD66 · Accepted solution]

Unless you resided in or did work in South Carolina you do not need to file a South Carolina tax return.  Just because the 1099-NEC was issued from/by a South Carolina business does not make it South Carolina income.  If you traveled to South Carolina and did the work there, you need to file a SC return.

[J_Liu]

Hi DavidD66 

Thanks for your promptly reply. I did travel to SC for the job in related to performing art for 3 days. I entered the income that I received while working in SC under the SC Schedule NR line 6, but the tax due is still showing $0. I am not familiar with SC tax, but does that mean SC only tax you when you exceed a certain amount received from SC?

Thank you,

[DawnC]

South Carolina does have a standard deduction which is prorated for nonresidents.   If your prorated SC income was less than your prorated SC standard deduction, you would owe no tax, and that sounds like what has occurred.   The math that TurboTax does in the background is explained below, but according to the South Carolina guidelines, you should file a nonresident SC return, even if there is no tax due.  SC - Dept. Of Revenue filing requirements.

SC Part-year and nonresidents compute tax based on AGI from South Carolina sources, which includes all items of AGI received while a South Carolina resident and all items received from South Carolina sources while a nonresident.  South Carolina AGI is then modified by South Carolina additions and subtractions. The standard deduction, itemized deductions, personal exemptions and dependent exemptions must be prorated by a ratio of South Carolina AGI to federal AGI.  To calculate taxable income, deduct the prorated South Carolina standard or itemized deduction.  

South Carolina proration is calculated by dividing South Carolina AGI by federal AGI.  Round the decimal to two places. The ratio cannot exceed 100%. The ratio is applied to the standard deduction and itemized deductions.   TurboTax does all of this on Schedule NR.