South carolina tax schedule forms

[jcttjg]

South Carolina form SC1040TC (Tax Credits) has a required tax schedule for each credit.  TurboTax does not seem to be including those documents.  How can we e-file without them?

[LenaH]

TurboTax will attach the schedules necessary for the tax credits you choose in the South Carolina state interview. 

Please complete the following to add your South Carolina credits: 

1. Open your return. 
2. Click on State in the column on the left side.
3. Go through your state interview until the screen named Have Any of These Credits? 
4. Credits for SC1040TC are listed in alphabetical order and there are a few pages for their state credits. 
5. Put a check box next to the credits that you need for the 2020 tax year. 
6. Follow the on-screen instructions and enter your information. 

[jcttjg]

Hi @LenaH ,

Thanks for your reply.  I have done what you described and that worked fine.  SC1040TC states, "You can find
credit codes and descriptions, along with the required tax schedule for each credit, beginning on page 4."  In my case, it concerns the tax schedule TC-38 (really just a computation worksheet).  Does this schedule TC-38 have to be filed with the tax return?  I ask because I completed my taxes; the credit shows on my SC return, and I have paid for and downloaded my tax returns from TurboTax to review prior to e-file.  When I put a checkmark next to Solar Energy, TurboTax never guided me through the questions that appear on Schedule TC-38.  It only asked me for the final result from TC-38.  I do see the SC1040TC in my download.

[LenaH]

No. 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. 

For instructions and to print out a copy for your records, please see TC-38. 

@jcttjg

[jcttjg]

@LenaH,

It seems your answer is incorrect for tax year 2020.  After electronically filing my returns, my SC tax return was rejected because TC-38 was missing.  Returning to TurboTax to correct and hopefully refile, this is the message that TurboTax provided:

This return could not be processed for e-filing because form TC-38 is required to be filed with the return. This program does not support this credit form at this time. If you want to claim this credit then you will need to print and mail your return along with the additional form TC-38 (can be found here https://dor.sc.gov/forms-site/Forms/TC38.pdf) to the proper taxing authority. We apologize for any inconvenience. If you wish to e-file, you will need to remove the solar energy credit amount from the "Other Non-refundable Credits" (SC-1040TC Line 5, Code 038). Run through review, make any changes if necessary, and re-submit this return electronically.

What a waste of time.  Not only can the software not handle this relatively simple state tax credit, it seems these limitations are not well known by the "experts".