Filing your 2018 South Carolina income tax return is essential for every resident, part-year resident, or person with South Carolina–source income during the year. Whether you are an individual taxpayer or own a small business, this guide will explain how to file a South Carolina tax return for 2018 in clear, straightforward terms. You will learn the steps for preparing the correct form, meeting deadlines, and paying the amount you owe while avoiding common errors that can delay processing or cause underpayment penalties.

South Carolina’s income tax return system works alongside your federal return. The information from your federal filing is essential for completing your state return accurately. This article outlines the required forms, schedules, and documentation you will need and describes how to submit your return through electronic filing or mail. It also covers payment options, refund tracking, and resources for getting help if you have questions.

By following this guide, you will have the tools and knowledge to complete your filing on time, ensure accuracy in your return, and keep more of your money by avoiding unnecessary penalties. For detailed instructions and official forms for South Carolina, visit the South Carolina Department of Revenue.

Overview of South Carolina State Income Tax for 2018

Purpose of the South Carolina Personal Income Tax Return

The South Carolina personal income tax return reports taxable income earned during the year, calculates the amount owed, and claims any credits or refunds. Every resident, part-year resident, or person who received South Carolina–source income must determine if they need to file. The process ensures that each taxpayer pays the correct amount based on state law and provides opportunities to reduce liability through available credits and deductions. Completing this process accurately helps avoid underpayment penalties and ensures compliance with state tax requirements.

How the State Tax Process Works with Federal Filing

South Carolina’s income tax return process is closely connected to your federal income tax return. The federal adjusted gross income is the starting point for state tax calculations. From there, South Carolina applies specific adjustments, exemptions, and credits. Because of this link, taxpayers should complete their federal return before preparing their state return. This order reduces errors and ensures that the amounts transferred to the state form match the federal figures, making the filing process smoother and faster.

Administering Agency and Filing Responsibilities

The South Carolina Department of Revenue collects state taxes, processes returns, and issues refunds. Taxpayers may e-file their return for faster processing or mail a paper form to the correct address. The department also provides resources for individuals and small businesses to request forms, find answers to common questions, and contact staff by email or phone for help. More details about the 2018 filing process are available in the official South Carolina Individual Income Tax Instructions.

Who Needs to File a South Carolina Tax Return for 2018

Filing requirements for 2018 depend on your residency status, income level, and whether you had South Carolina–source income during the year. Every person who meets the criteria outlined by the state must complete the process to ensure correct reporting of taxable income and to avoid underpayment penalties. Understanding these rules helps residents, part-year residents, and nonresidents comply with state law while protecting their money from unnecessary interest charges.

Residents and Part-Year Residents

You must file a South Carolina personal income tax return (Form SC1040) if you:

  • We were required to file a federal income tax return and had income taxable by South Carolina

  • Had South Carolina income tax withheld by an employer during the year

  • Lived in South Carolina for part of the year and received income from a South Carolina source

Nonresidents

A nonresident must file if they:

  • Earned income from property, a business, or other investments in South Carolina

  • Worked for a South Carolina employer and had state taxes withheld

  • Received South Carolina source income during the tax year, even without residency

Age-Based Income Thresholds

South Carolina allows higher income thresholds for taxpayers age 65 or older:

  • Married filing jointly, both spouses 65+: File if gross income exceeds the federal requirement plus $30,000

  • All other filing statuses, age 65+: File if gross income exceeds the federal requirement plus $15,000

Refer to the IRS’s guide on State Government Tax Agencies for a complete list of general state income tax filing requirements. This resource provides direct links to official state tax websites for accurate and current filing information. It is a reliable starting point for understanding individual state requirements before preparing your return.

Key Filing Deadlines and Important Changes for 2018

Standard and Extended Deadlines

For the 2018 tax year, the standard deadline for filing a South Carolina personal income tax return was April 15, 2019. Taxpayers who chose to e-file were granted an automatic extension to May 1, 2019, for filing and payment, provided they used an approved electronic system. This extension applied only to South Carolina returns and did not affect federal deadlines. Individuals who needed more time could submit an extension request, which moved their filing deadline to October 15, 2019. However, any amount owed still had to be paid by the original April deadline to avoid underpayment penalties.

Significant Changes to the 2018 Tax Year

Several adjustments to South Carolina’s tax code took effect for 2018. A significant change was the state and local tax (SALT) add-back rule, requiring certain taxpayers to add back deductions for state and local income taxes claimed on their federal return. The state also introduced or enhanced several credits, including the Earned Income Tax Credit, Tuition Tax Credit, and the Motor Fuel Income Tax Credit. These changes aimed to give residents more ways to reduce their tax liability while aligning state law with federal updates.

Avoiding Penalties Through Timely Filing

Meeting deadlines is essential for avoiding unnecessary interest charges and penalties. Submitting your return on time ensures accurate processing and helps keep your account in good standing with the state. Planning, preparing required forms early, and using electronic filing options can save time and money.

Required Forms and Schedules for Your 2018 Return

Main Form: SC1040

The SC1040 is the primary personal income tax return form for South Carolina. Every resident, part-year resident, and nonresident who meets the filing requirements must use this form to report taxable income, claim deductions or credits, and calculate the amount owed or refund due. The SC1040 includes personal information, income reporting, adjustments, and tax computation sections. Ensuring the form is complete and accurate before submission helps avoid delays and potential underpayment issues.

Supporting Schedules and Credit Forms

Several schedules and forms may need to be filed along with the SC1040. Nonresidents and part-year residents use Schedule NR to report only the portion of income taxable by South Carolina. SC1040TC claims available state credits, such as the Tuition Tax Credit, Earned Income Tax Credit, and Motor Fuel Income Tax Credit. Additional forms, including I-319 for tuition credits and I-385 for motor fuel credits, may be required if you qualify for those benefits. A payment voucher form is used when mailing a payment to ensure it is correctly applied to your account.

Accessing Forms and Requesting Assistance

Taxpayers can obtain forms from reputable sources, including official government portals and select educational institution resources that provide tax guidance. If you cannot access the forms online, you can request them by mail or email from recognized agencies. Contact information for these agencies is available through verified state and federal directories. Preparing the correct forms in advance and any necessary documentation will help streamline the filing process and save both time and money.

Step-by-Step Process to File Your 2018 South Carolina Income Tax Return

Step 1 – Gather Required Documents

Before you begin, collect all necessary documents to ensure accurate filing. This includes W-2 forms from each employer, 1099 forms showing other income with South Carolina tax withholding, and a copy of your completed federal return. You should also have bank account information ready for direct deposit or payment and records of estimated tax payments made during the year. Documentation for any credits you intend to claim will also be required.

Step 2 – Complete Your Federal Return First

The state return uses figures from your federal return, so it is essential to complete that first. Federal adjusted gross income is the starting point for your South Carolina tax calculation. Completing the federal return first ensures that all amounts transferred to the state form are correct.

Step 3 – Enter Personal and Filing Information 

Fill in your name, Social Security number, and current mailing address. Choose the correct filing status, which will typically match your federal status. Ensure the information is complete and accurate to prevent processing delays.

Step 4 – Report South Carolina Income and Adjustments

Transfer the federal adjusted gross income to your state form, then apply South Carolina-specific additions and subtractions. This may include the state and local tax add-back or deductions for exempt income, such as certain retirement benefits.

Step 5 – Apply Credits and Calculate Tax Owed

Use applicable schedules to claim credits. Then calculate your total tax owed using South Carolina’s graduated tax rates. Compare this to your total payments and withholding to determine if you will receive a refund or owe additional money.

Step 6 – File and Confirm Submission

Submit your return through approved file providers or mail it to the correct address. Keep a copy of the filed return and submission confirmation for your records. Filing early allows more time to correct any errors and ensures timely processing.

Filing Options and Submission Methods

Electronic Filing (e-file)

Electronic filing is the most efficient way to submit your 2018 South Carolina income tax return. Using an approved e-file provider allows you to send both your federal and state returns together or separately, depending on your situation. E-filing reduces errors by using automated checks, speeds up refund processing, and provides an immediate confirmation that your return has been received. Taxpayers who used e-file in 2018 also benefited from an extended filing deadline compared to paper submissions.

Paper Filing

Paper filing is an option for taxpayers who prefer to submit physical forms or whose tax situation requires it. When filing by mail, it is essential to send your return to the correct address, depending on whether you owe money or expect a refund. Include all necessary schedules, forms, and documentation in the proper order to prevent delays in processing. Certified mail or another trackable delivery method can provide proof of timely filing.

Choosing the Best Option for Your Situation

Selecting between e-file and paper filing depends on your preferences, access to technology, and the complexity of your return. An e-file is generally recommended for faster processing, more accurate submissions, and quicker refunds. Paper filing may be more suitable for individuals who prefer physical records or need to include extensive supporting documents. Whichever method you choose, ensure that all required forms are completed and signed, and that payment arrangements are made if you owe a balance.

How to Pay South Carolina Taxes for 2018

Online Payment Options

Taxpayers who owe a balance for 2018 can make payments online through secure state-authorized payment portals. These systems allow you to pay directly from a financial institution account via electronic funds transfer or credit card. Paying online ensures faster processing and immediate confirmation, and reduces the risk of mail delays. You can also schedule future payments to help manage cash flow and avoid late fees.

Mailing a Check or Money Order

If you prefer to pay by mail, you can send a check or money order and a completed payment voucher. Make the payment payable to the correct state agency and include your Social Security number and tax year on the memo line. Mailing your payment early ensures it arrives before the due date. Certified mail or another trackable delivery option can provide proof of timely payment.

Estimated Tax Payments for Future Years

Consider making estimated tax payments if you expect to owe taxes in future years. These quarterly payments help you avoid underpayment penalties and spread your tax liability over the year. Payments can be made online or by mail, using the appropriate forms and instructions. Planning and paying on time helps keep your account in good standing and avoids unnecessary interest charges.

Tracking Your Refund or Balance Due

Online Tracking Tools
Taxpayers can track the status of their 2018 refund through secure online systems provided by authorized state platforms. These tools typically require your Social Security number, the filing status from your return, and the exact refund amount. Online tracking is updated regularly and offers the fastest way to confirm whether your return has been processed and your refund issued.

Phone Assistance
If you prefer to speak with a representative or use an automated system, you can check your refund or balance due by phone. Be prepared to provide identifying information such as your account details, Social Security number, and the tax year. This option is helpful if you do not have internet access or want direct assistance.

Typical Processing Times
Electronic returns are generally processed more quickly than paper returns, which require manual data entry. Refunds sent by direct deposit arrive faster than paper checks, while balance due payments are applied to your account as soon as they are processed. Monitoring your refund or payment status helps ensure that any issues can be resolved promptly, saving you time and avoiding potential penalties.

Final Filing Checklist

Filing your 2018 South Carolina income tax return accurately requires careful review before submission. Ensuring all information is correct can help you avoid delays, underpayment penalties, or needing to amend your return later.

Verify that every required form, schedule, and document is included. This means checking that your SC1040 is fully completed, your W-2 and 1099 forms are attached if applicable, and any supporting schedules for credits or deductions are in place. Ensure your personal information, including your name, Social Security number, and mailing address, is correct.

Finally, decide whether you will file electronically or by mail, and confirm that payment arrangements have been made if you owe a balance. Keep a complete copy of your return and proof of submission or mailing for your records. These steps help protect your account, keep your tax history organized, and provide documentation if you ever need to answer questions or resolve issues in the future.

Frequently Asked Questions: How to file a South Carolina tax return for 2018

What forms do I need to file my 2018 South Carolina income tax return?

Most taxpayers will need Form SC1040 as the primary return and any applicable schedules or credit forms. Nonresidents and part-year residents may need Schedule NR. Additional forms like SC1040TC, I-319, or I-385 may apply if claiming certain credits. Preparing all necessary forms before starting will help you file accurately and avoid delays.

Can I still file my 2018 South Carolina tax return if I missed the deadline?

You can still file, but penalties and interest may apply if you owe money. Late filing may result in failure-to-file and failure-to-pay charges. Filing as soon as possible can reduce these costs. If you expect a refund, you generally have up to three years from the original deadline to claim it, but after that, the refund will be forfeited.

What are the main deadlines I should have met for the 2018 tax year?

The original filing deadline was April 15, 2019. Taxpayers using e-file received an extended deadline of May 1, 2019. If you requested an extension, your deadline was October 15, 2019, though payment for any tax owed was still due by April 15 to avoid underpayment penalties. Meeting these deadlines helps prevent additional interest and penalty charges.

How do I pay if I owe taxes for 2018?

If you owe a balance, you can pay electronically through an approved state payment portal or mail a check or money order with a payment voucher. Ensure your Social Security number, tax year, and contact information are included. Payments should be made promptly to avoid interest and penalties, and you may choose to make quarterly estimated tax payments to prevent future underpayment issues.

How do I track my 2018 South Carolina tax refund?

Refund status can be checked online through a secure tracking system or by calling the automated phone line. You will need your Social Security number, filing status, and exact refund amount from your return. Online updates are posted regularly, and direct deposit refunds typically arrive faster than paper checks. Keeping track of your rebate ensures you can address any issues quickly.

What if I made a mistake on my 2018 return?

If you discover an error after filing, submit an amended return using Form SC1040X. Include corrected information, supporting documents, and explanations for changes. Amended returns should be filed as soon as the mistake is found to reduce the risk of additional penalties or interest. The time limit for amending generally follows the same rules as the federal amendment period.

Can military personnel file differently for 2018?

Yes, South Carolina offers specific filing provisions for military personnel. Nonresidents stationed in the state generally do not pay state tax on military income. Residents serving outside South Carolina must still file and report their income but may qualify for certain exemptions. Depending on their circumstances, spouses may be eligible for additional protections under the Military Spouse Residency Relief Act.