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ColoYooper
Returning Member

Can't modify SC1040TC Wksht Line 1A

My wife and I recently retired from our jobs in Colorado and moved to South Carolina as residents.  I am attempting to get the correct income entered in the SC1040TC Wkrsht Line 1A.  The only income we have received since becoming residents to SC has been from our 401Ks, but TurboTax insists on placing the full value from our Federal Form 1040 Line 9.  This value was correctly modified and taxed with the Colorado return, but is way TOO large to be taxed again for South Carolina. Thanks ColoYooper

 
 
 
 
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1 Reply
Cynthiad66
Expert Alumni

Can't modify SC1040TC Wksht Line 1A

@ColoYooper

 

Per DanielV01

South Carolina does not have a true part-year return.  Rather, they either will tax you as a nonresident or as a full-year resident.  If they tax you as a full-year resident, all of your income is taxed in South Carolina, but then they give you a credit for the tax you pay in the state where you came from.  This doesn't work for you, because you lived in Florida which has no state tax.  Therefore, you will want to choose the Nonresident option.  This way guarantees that South Carolina only taxes the income you made while working in South Carolina.

 

If you cannot find this option when you select the part-year resident, then start the state return over and select nonresident so that your Florida income is excluded from the South Carolina return.  (One caveat:  South Carolina may still pretend that all of the income is taxable, and then prorate the tax to the percentage of income earned only in South Carolina.  This is still less tax than if all of the income is actually considered taxable, which is what happens when you use method 1 described above).

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