South Carolina provisions for lump sum distributions are the same as the federal provisions except South Carolina does not impose a premature distribution penalty. If you used federal Form SC4972 for a lump sum distribution, you must use the South Carolina SC-4972 to compute the South Carolina tax.
Line 4 Retirement Deduction:
An individual may deduct up to $3,000 of qualified retirement income, and, beginning in the tax year in which the individual reaches age sixty-five, up to $10,000 of qualified retirement income.
A surviving spouse receiving qualified retirement income attributable to the deceased spouse may deduct up to $3,000 or $10,000, whichever would have applied, based on age, had the deceased spouse lived. The surviving spouse retirement deduction is in addition to the individual retirement deduction from his or her own plan.
The retirement deduction can be claimed here to the extent it is not claimed on SC1040 or Schedule NR. If an age-65-and-older deduction has been claimed on SC1040 or Schedule NR, do not include any individual retirement deduction on line 4.
See SC1040 instructions for additional information
Line 5 Age-65-and-older deduction:
Beginning in the tax year in which a resident reaches age 65, a deduction of $15,000 can be claimed against any South Carolina income. However, it is reduced by the amount of any individual retirement deduction. The age-65-and-older deduction is not reduced by any surviving spouse retirement deduction.
The age 65-and-older deduction can be claimed on line 5 to the extent it is not claimed on SC1040 or Schedule NR.
See SC1040 instructions for additional information.
2014 SOUTH CAROLINA TAX RATE SCHEDULE FOR LINES 21 AND 24 ONLY
| If the amount is OVER |
But
not
OVER
|
Compute the tax as follows: |
| -0- |
$2,880 |
$0 |
| $2,880- |
5,760 |
3% less $86 |
| 5,760- |
8,640 |
4% less $144 |
| 8,640- |
11,520 |
5% less $231 |
| 11,520- |
14,400 |
6% less $346 |
| 14,400+ |
or more |
7% less $490 |