Hi jp3946,
I found the relevant SC Code Scetions that address your question. The
short version: There is a TAX CREDIT available to you in South
Carolina.
REFERENCE:
..."Q. Does South Carolina allow a credit for taxes paid to another country?
http://www.sctax.org/Tax+Information/Individual+Income+Tax/indfaq.htm#TaxCredits
A. South Carolina allows a credit against taxes paid to another state
on income that is taxed in South Carolina and another state. Since the
credit is not specifically limited to a tax paid to a state of the
United States, the credit is allowed for taxes paid to political
entities equivalent to a state which are located outside the borders
of the United States. An example of tax paid to a political entity
equivalent to a state is a Canadian province. A tax paid to another
country, such as Italy, would be equivalent to a tax paid to the
United States, not a state, and would not be allowed the credit.
See Code Section 12-6-3400, Commission Decision I-D-288, and Opinion No. 3804..."
Here's the Code Section:
SECTION 12-6-3400. Credit for income tax paid by South Carolina
resident to another state.
http://www.scstatehouse.net/code/t12c006.htm
..."(A)(1) Resident individuals are allowed a credit against the taxes
imposed by this chapter for income taxes paid to another state on
income from sources within that state which is taxed under both this
chapter and the laws of that state regardless of the taxpayer's
residence.
(2) The credit allowed is the lesser of:
(a) the product of the fraction in which the numerator is total South
Carolina income which is subject to income tax in another state and
the denominator is total federal income adjusted by the modifications
provided in Article 9 of this chapter and subject to allocation and
apportionment as provided in Article 17 of this chapter, multiplied by
South Carolina income tax before the credit allowed by this section;
or
(b) the income tax actually paid to the other state on income taxed
under this chapter.
(3) A copy of the income tax return filed with the other state must be
filed with the South Carolina tax return at the time credit is
claimed. If the credit is claimed because of a deficiency assessment
notice, a copy of the notice and a receipt showing the payment must be
filed.
(B) If a taxpayer is refunded or credited taxes paid to another state
for which a credit has been allowed under this section, then a tax
equal to that portion of the credit allowed is due and payable from
the taxpayer within sixty days from the date the refund or the notice
of the credit is received. If the amount of the tax is not paid within
sixty days of receipt or notice, the taxpayer is subject to penalties
and interest for failure to pay provided in Chapter 54 of this title.
(C) When a taxpayer is considered a resident of this State and is also
considered a resident of another state under the laws of the other
state, the department may, at its discretion, allow a credit against
South Carolina income taxes for those taxes paid to the other state on
income taxed under this chapter..."
You'll need to consult a tax professional to determine the exact
amount of your credit. If I can be of further assistance, please don't
hesitate to ask for a clarification!
~~Cynthia
Search terms used at Google:
"South Carolina" "income tax" "out-of-state" |
