Essential Guide: How to File a South Carolina Tax Return Effortlessly

Filing a South Carolina tax return for the 2016 tax year may still be necessary, even in 2025. If you missed the original due date, need to file an amended return, or believe you're still eligible for a refund, you can often submit your paperwork. However, strict deadlines and procedures exist, especially when claiming a refund or requesting an adjustment, so acting promptly and following state requirements is essential.

This guide is tailored for individuals, sole proprietors, and small business owners preparing a late or corrected return. Whether you’re managing this process alone or with help from tax preparers or attorneys, our goal is to help you file correctly, avoid penalties, and maximize any eligible tax credits or deductions. Accuracy and attention to detail are key—especially when filing on paper, which is often required for prior-year tax returns.

South Carolina’s tax laws and forms are based partly on federal tax returns but include state-specific rules, deadlines, and forms. Knowing the differences between state and federal requirements can help prevent costly errors. This article provides step-by-step instructions, helpful tips, and direct links to official resources from the South Carolina Department of Revenue and the Internal Revenue Service (IRS).

Overview of South Carolina Income Tax for 2016

South Carolina’s Income Tax Structure

For the 2016 tax year, South Carolina residents were subject to state income tax on their entire income, regardless of where it was earned—unless that income was specifically exempted by law. In contrast, nonresidents were taxed only on income earned within South Carolina. This structure applies to individuals, sole proprietors, and small business owners and requires careful attention to residency status and income source.

The South Carolina income tax system was based on the federal system but had its own rates and deductions. The top rate for 2016 was 7% for income exceeding $14,650, making it essential for taxpayers to review their income brackets accurately. While most taxpayers calculated their state liability starting from their federal taxable income, South Carolina required several state-specific additions and subtractions to arrive at the final taxable amount.

Conformity with Federal Tax Law and Key Changes

South Carolina generally conformed to the Internal Revenue Code (IRC) as it existed on December 31, 2015. This means many federal deductions, exemptions, and tax credits remained valid for state purposes. However, the state also preserved specific South Carolina-specific provisions that could differ from your federal return, including treatment of retirement income, military pay, and volunteer service deductions.

Some significant changes from the 2015 tax year included updates to tax credit forms, minor modifications to income exclusions, and the continuation of the state’s conformity with federal provisions. It’s essential to verify which deductions and credits applied for 2016 by reviewing the official instructions and schedules available on the South Carolina Department of Revenue’s website.

Types of Taxable Income

South Carolina taxed most types of income, including:

• Wages and salaries
• Self-employment income
• Business and rental income
• Interest and dividends (with some exceptions)
• Capital gains (with partial deductions available)
• Certain types of retirement distributions

Certain types of income were excluded or partially deducted, including Social Security benefits, military reserve pay, and interest from U.S. government obligations. Correctly identifying which income types were subject to tax was essential when preparing your return.

Who Needs to File a 2016 South Carolina Tax Return

Whether or not you were required to file a South Carolina tax return for the 2016 tax year depends on your residency status, income level, age, and tax withholding. Understanding these requirements is essential for determining if you're still obligated to file or eligible for a refund—even after the original deadline.

Filing Requirements for South Carolina Residents

Full-year residents of South Carolina were required to file a 2016 state return if they met either of the following conditions:

• They were required to file a federal tax return, and their income was taxable in South Carolina.
• They had South Carolina income tax withheld from their wages.

Residents under age 65 were typically required to file if they met the federal filing requirement and earned income taxable by South Carolina.

Residents age 65 or older had slightly higher income thresholds:

• Married Filing Jointly (65 or older): File if your gross income exceeds the federal requirement plus $30,000.
• All other filing statuses: File if your gross income exceeded the federal requirement plus $15,000.

Requirements for Nonresidents and Part-Year Residents

If you were a nonresident or part-year resident in 2016, you had to file a South Carolina return if either of the following applied:

• Your South Carolina gross income was greater than the federal personal exemption amount.
• South Carolina taxes were withheld from your income.

Nonresidents are taxed only on income earned within the state. If you lived in another state but earned wages in South Carolina or received rental or business income from SC-based property or services, you must report that income and file.

Withholding and Other Triggers

You must also file a 2016 South Carolina return if:

• South Carolina tax was withheld from your paycheck, even if your income was below the filing thresholds.
• You are requesting a refund of overpaid taxes.
• You received taxable income from South Carolina sources such as rental property, business activity, or contract work performed in the state.

Filing is also necessary to protect eligibility for certain tax credits or when you're submitting amended returns (using Form SC1040X) for the applicable period.

Required Forms and Schedules for 2016

To file your 2016 South Carolina tax return correctly, you must use the appropriate forms and schedules based on your income type, residency status, and any tax credits you claim. These forms must be completed in full and submitted to the South Carolina Department of Revenue by mail or using supported digital methods where available.

Primary Form

• Form SC1040 – Individual Income Tax Return
  This is the main form for all South Carolina taxpayers. It is required regardless of whether you are a full-year, part-year, or nonresident. Most personal income tax filers will use this form to report income, deductions, and payments and calculate their refund or tax due.

Common Supporting Forms and Schedules

• Schedule NR – Nonresident and Part-Year Resident Schedule
  Required if you were not a full-year resident of South Carolina. This form calculates your prorated state income and applicable deductions.
• Form SC1040TC – Tax Credits Schedule
  Use this to claim nonrefundable tax credits, including the Tuition Tax Credit, Child and Dependent Care Credit, and more. Attach the required documentation to support each credit.
• Form I-319 – Tuition Tax Credit
  For filers claiming a credit for higher education expenses paid for themselves or dependents.
• Form I-330 – Contributions for Check-Offs
  Used to direct small donations to various South Carolina-supported causes through your return.
• Form SC4868 – Request for Extension of Time to File
  If you requested more time to file in 2016, this form documents your extension. Remember, this does not extend the time to pay any tax due.
• Form SC1040X – Amended Individual Income Tax Return
  Required if you need to correct or change your previously filed 2016 SC1040. You may need to submit this form to the state if you also amended your federal return for that year.

Where to Get These Forms

You can download all official 2016 forms and instructions directly from the South Carolina Department of Revenue’s website at dor.sc.gov/forms. You may also request paper copies by calling the Forms Request Line at (800) 768-3676. When searching online, select forms specific to the 2016 tax year, as current-year forms are not valid for past returns.

Step-by-Step Guide to Completing Your SC1040 Return

This section walks you through completing your 2016 South Carolina Individual Income Tax Return (Form SC1040). Accuracy at each stage is vital to ensure your return is accepted and processed without penalties or delays. Gather all necessary documents before starting and complete each line based on the instructions from the South Carolina Department of Revenue and the IRS.

Step 1 – Gather Documents

Before completing your return, you’ll need:

• W-2 forms from all employers
• 1099 forms for additional income (interest, dividends, contract work, retirement)
• Federal tax return (Form 1040 and all schedules)
• Records of deductions (if you itemized on your federal return)
• Documentation for tax credits (tuition expenses, charitable contributions, etc.)
• Previous year’s return (for reference)
• Bank account information (for direct deposit or electronic payments)

Make sure everything matches your 2016 tax year records. Inaccurate or missing data may lead to errors, delays, or missed refunds.

Step 2 – Fill Out Personal and Filing Info

Start the SC1040 by completing the top section:

• Enter your full name, Social Security number, and current mailing address
• If married and filing jointly, include your spouse’s information
• Select your filing status (must match your federal return)
• List all dependents with names, Social Security numbers, and birthdates
• Confirm your number of exemptions, which should align with your federal return

Be sure to sign and date the form once completed. If filing jointly, both spouses must sign.

Step 3 – Report Income and Adjustments

Start with your federal taxable income, then adjust to South Carolina requirements.

• Line 1: Enter the amount from your federal return
• Lines 2a–2e: Additions to income, including
  
  • State tax add-back if you itemized deductions federally
  • Losses from out-of-state sources
  • Interest from non–South Carolina municipal bonds
• Lines 3f–3v: Subtractions from income, such as:
  
  • Retirement income deduction: $3,000 (under 65) or $10,000 (65+)
  • Social Security income (excluded from SC income)
  • Military reserve pay and specific U.S. government interest
  • Capital gains deduction: 44% of net long-term gains
  • Volunteer firefighter deduction: up to $3,000

Attach a clear explanation and documentation for each addition or subtraction where required.

Step 4 – Calculate Tax Liability

Using your adjusted South Carolina taxable income, calculate your state tax:

• Refer to the 2016 South Carolina tax tables for your filing status
• Enter your calculated state income tax
• Ensure the correct application of tax brackets to avoid overpayment

Be aware of the top rate of 7% for high-income earners.

Step 5 – Claim Credits and Report Payments

• Use Form SC1040TC to claim nonrefundable tax credits
• Enter the amount of South Carolina withholding from W-2s or 1099s
• Include any estimated tax payments made during 2016
• Claim eligible credits such as
  
  • Tuition Tax Credit (Form I-319)
  • Child and Dependent Care Credit
  • SC Future Scholar contributions

Be sure to attach all required schedules and documentation to support your credits.

Step 6 – Determine Refund or Amount Due

• Subtract your total tax payments and credits from your calculated tax liability.
• If you overpaid, enter the amount of your refund
• If you owe, calculate the balance due and select a payment method

For refunds, provide your bank routing and account numbers for direct deposit. If you owe tax, see the next section for payment options and deadlines.

How to File Your Return

South Carolina offers multiple ways to file your 2016 tax return. While electronic filing options may be limited for prior-year returns, choosing the method that ensures accuracy and timely processing is essential. Below are the techniques and tips to submit your return most effectively.

Electronic Filing Options (If Available)

Although most Free File and e-filing services only support current tax years, some tax preparers and software providers may still allow electronic filing of back tax returns, including those for 2016. Contact your provider to check if they support e-filing for South Carolina prior-year returns.

• SC Fillable Forms: This tool allows basic electronic submission of Form SC1040 and select schedules, such as I-319 and I-330. It's limited but may be suitable for simple filings.
• Professional Tax Services: If you're unsure how to proceed, working with a licensed tax professional or attorney can help you file accurately and stay compliant.

Note: If e-file options are unavailable, paper filing is still accepted by the South Carolina Department of Revenue.

Paper Filing

To file by paper:

• Print and complete Form SC1040 and any required schedules.
• Attach all supporting documents, including W-2s, 1099s, and a copy of your federal return.
• Mail your return to the correct address based on your filing status:

If You Are Expecting a Refund or Have No Balance Due:
SC1040 Processing Center, PO Box 101100, Columbia, SC 29211-0100

If You Owe a Balance: Taxable Processing Center, PO Box 101105, Columbia, SC 29211-0105

Filing Tips

• Review your return for calculation errors and missing signatures before mailing.
• Use only the official mailing addresses listed above to avoid delays.
• Double-check that all forms and schedules are included and signed.
• Keep copies of your entire submission for your records or audit protection.

How to Pay Your South Carolina Tax

If you owe taxes on your 2016 South Carolina return, paying promptly is vital to avoid penalties and interest. The South Carolina Department of Revenue (SCDOR) accepts multiple payment methods. Choose the best option and verify that you’re referencing the correct tax year.

Online Payment Options

• DORePay Portal: Visit dor.sc.gov and click the “Pay” option to access the secure DORePay system. This portal accepts:
  
  • Electronic Funds Withdrawal (EFW) from a checking or savings account
  • Credit or debit card payments (processing fees may apply)
• Pay When E-Filing: If you filed electronically through a supported provider, you may have scheduled your payment automatically during submission.

Traditional Payment Methods

• Check or Money Order:
  Make it payable to the
  South Carolina Department of Revenue
  
  • Include your Social Security number, the tax year (2016), and the form type (SC1040) on the memo line
  • Do not send cash through the mail
• Mailing Address for Payments:
  South Carolina Department of Revenue
  PO Box 101105,
  Columbia, SC 29211-0105

Important Reminders

• The original due date for 2016 payments was April 15, 2017.
• If you filed electronically, you had until May 1, 2017, to pay without penalties, under South Carolina’s e-file incentive.
• Late payments are subject to interest and penalties until the balance is paid in full.

Please submit your payment correctly for proper processing, and always retain proof of payment for your records.

How to Track Your Refund or Balance Due

Once you’ve filed your 2016 South Carolina tax return and submitted payment (if required), tracking your refund status or monitoring any balance due is essential. The South Carolina Department of Revenue provides online and phone-based tools to help you check the status of your return or payment.

Tracking Your Refund

To check your 2016 refund status online:

1. Visit the official site: dor.sc.gov/refund
2. Enter the following information:
   
   • Your Social Security number
   • Filing status (must match your return)
   • The exact refund amount claimed on your SC1040

You may also call the SCDOR refund hotline at (803) 898-5300 to inquire about your refund.

Expected Processing Times

• Electronic returns with direct deposit: Usually processed within 3 weeks
• Paper-filed returns: Allow at least 5 weeks for processing
• Early filers typically receive faster refunds than those who submit close to the deadline

Avoid calling before the minimum processing time to reduce delays and hold times.

Checking a Balance Due

If you owe taxes or have submitted a partial payment:

• Log in to the DORePay portal at dor.sc.gov/pay
• Use your Social Security number or ITIN and tax year to view any outstanding balance
• You can also view prior payments made, verify current due amounts, and schedule future payments

Always retain a copy of your confirmation for each transaction to protect against errors.

Amending or Extending a 2016 Tax Return

Even years after the original filing deadline, you may still need to amend or extend your 2016 South Carolina tax return. Understanding when and how to do this properly can help avoid penalties, preserve refund eligibility, and ensure compliance with state and federal rules.

Amending Your 2016 Return

If you made an error or forgot to include income, deductions, or tax credits, you must file Form SC1040X, South Carolina’s amended individual income tax return.

Common reasons to file an amendment include:

• Changes to your federal return that affect your state return
• Missed deductions or credits
• Incorrectly reported income or withholding
• Filing under the wrong status

You have up to three years from the original filing date or two years from the date the tax was paid (whichever is later) to file an amended return and claim a refund. If your IRS transcript shows a change, South Carolina generally requires you to amend your state return to match.

Requesting an Extension

To request more time to file your 2016 return, you would have used Form SC4868. While this form allowed for a filing extension, it did not extend your time to pay. The taxes owed were due by April 15, 2017, to avoid interest and penalties.

Documentation for the extension request must be retained for your records. If you missed the deadline but were granted an extension, indicate this when submitting your return.

Common Mistakes to Avoid

Even simple errors on your 2016 South Carolina tax return can lead to delays, penalties, or rejected submissions. Before mailing or submitting your return, review it carefully to avoid the following common filing mistakes.

1. Mismatched Filing Status or Exemptions

Your South Carolina filing status must match the status listed on your federal return. Also, be sure to claim the same number of exemptions. Mismatches are a common reason for processing delays.

2. Missing Signatures

All returns must be signed. If you’re married and filing jointly, both spouses must sign the SC1040 form. Unsigned returns are invalid and will be rejected by the South Carolina Department of Revenue.

3. Incorrect Mailing Address

Use the correct mailing address based on whether you owe a balance or expect a refund. Mailing to the wrong address may result in lost paperwork or long delays in refund processing.

4. Missing or Incomplete Attachments

Include copies of the following, where required:

• W-2s and 1099s
• Federal tax return
• Supporting schedules (e.g., Schedule NR, SC1040TC)
• Documentation for credits or deductions

Failure to attach required documents may cause your return to be flagged for review.

5. Calculation or Entry Errors

Simple math errors or entering income on the wrong line can lead to incorrect balances or refund amounts. Use a calculator or a tax preparation tool to verify accuracy before filing.

Final Filing Checklist

Before submitting your 2016 South Carolina tax return, use this checklist to ensure your documents are accurate, complete, and ready for processing. Double-checking each item can help you avoid processing delays, missed refunds, or penalties.

Pre-Submission Checklist

• Completed Form SC1040 with all required fields filled out
• All W-2s and 1099s attached
• A copy of your 2016 federal tax return (Form 1040) is included
• Required schedules attached (e.g., Schedule NR, SC1040TC)
• Documentation for tax credits and deductions is enclosed
• Correct filing status and number of exemptions
• Both signatures present (if filing jointly)
• Bank account information entered correctly for direct deposit
• Payment enclosed if balance is due, or confirm online payment was submitted
• The correct mailing address is used based on the refund or balance due
• Keep a copy of all documents for your records
• Proof of extension request included if applicable

Filing Tips

• Review your return one last time for any errors or missing information.
• Ensure all forms are completed legibly using black or blue ink if filing on paper.
• If sending by post, use a tracking method (e.g., certified mail or return receipt) to verify submission.

A complete and accurate submission will help protect your refund and reduce the risk of notices from the South Carolina Department of Revenue.

Frequently Asked Questions

Can I still file a 2016 South Carolina tax return in 2025?

Yes, but only in specific cases. You may file to correct an error or claim a refund if it’s still within three years of the original due date or two years from the date the tax was paid. Use Form SC1040X for amended returns and include all required documentation.

What if I never received a refund from a 2016 return I filed?

You can check your refund status on the South Carolina Department of Revenue website using your SSN, filing status, and refund amount. If it’s been over five weeks since you filed a paper return or three weeks for an e-file, contact the agency directly to request a transcript or payment verification.

How do I file jointly if one spouse moved out of state in 2016?

You can still file jointly as South Carolina residents if both spouses were residents for any part of the year. Suppose one spouse was a nonresident; file Form SC1040 with Schedule NR. You’ll need to allocate income based on residency and income source.

What deductions are commonly overlooked on SC returns?

Many taxpayers miss deductions that can significantly lower their tax liability. Commonly overlooked deductions on South Carolina returns include the retirement income exclusion, the 44% capital gains deduction, military reserve pay deductions, and volunteer firefighter benefits. Others forget to deduct interest from U.S. government bonds or SC Future Scholar program contributions. Always verify eligibility and attach supporting documentation when claiming these deductions on your 2016 return.

Do I need to file a federal and South Carolina return?

Yes, South Carolina returns are based on your federal taxable income, so you must complete your federal return first. If you are required to file federally and your income was taxable by South Carolina, you must also file a state return—even if no tax is owed.

How long should I keep my 2016 tax records?

Keep your 2016 federal and state tax records for at least three years after the filing date or two years after the tax was paid. Keep documentation longer for assets like property, business records, or capital investments that may affect future returns or audits.

Can I file a late return online, or must I mail it?

Most 2016 tax returns must be filed by mail, as electronic systems typically support only current-year filings. Use SC1040 and the correct mailing address based on refund or balance due status. If you're working with a tax preparer, they may offer limited e-file options.