New to South Carolina? Here’s What You Need to Know About Filing State Taxes

South Carolina continues to be one of the fastest-growing states in the country, drawing thousands of new residents each year. According to the South Carolina Department of Revenue (SCDOR), determining whether to file as a resident or nonresident is an essential step when preparing your 2024 South Carolina Individual Income Tax return.

Determining Your Residency Status
According to the SCDOR, you are considered a South Carolina resident for tax purposes if all three of the following apply:

• South Carolina is your permanent home.
  Your financial, social, and family life is centered in South Carolina.
  When away, you intend to return to South Carolina.

If your permanent home is located outside of South Carolina all year and none of the above criteria apply, you are classified as a nonresident for tax purposes.

Special Residency Circumstances
The SCDOR provides additional guidance for taxpayers in unique situations:

Military Members – If you were a South Carolina resident when you joined the military, you retain your residency status even if you are stationed elsewhere on military orders. You should file as a South Carolina resident.

Married Couples with Different Residency Status – If one spouse is a South Carolina resident while the other is not, the couple should file using a South Carolina return and attach Schedule NR, which separates taxable income between the two states.

South Carolina Residents Working in Another State – Residents who earn income in another state are still taxed on all their income by South Carolina. However, they may claim a credit for taxes paid to the other state by using the SC1040TC form.

Part-Year Residents – If you lived in South Carolina for only part of the year, you have two options for filing:

File as a full-year resident and claim a credit for taxes paid to another state using SC1040TC.

File using Schedule NR, reporting only income earned while living in South Carolina or income from South Carolina sources.

For more information on residency and domicile rules, refer to the SCDOR’s Determining a Taxpayer’s Domicile for Income Tax Purposes guide.

Important Filing Deadline
Due to tax relief granted following Hurricane Helene, the deadline to file 2024 South Carolina Individual Income Tax returns has been extended to May 1, 2025.

For further details and tax resources, visit the South Carolina Department of Revenue’s website.