South Carolina Fiduciary Income Tax Return

Fiduciary Income Tax Return
SC1041_3084
1350

SC1041

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE

dor.sc.gov

(Rev. 7/7/23)
3084

FIDUCIARY INCOME TAX RETURN

For the calendar year 2023 or Fiscal Taxable Year beginning

-

-

and ending

-

Name of estate or trust

2023

FEIN

Name and title of fiduciary

Mailing address

City

ATTACH COPY OF FEDERAL FORM 1041 AND ALL SCHEDULES, INCLUDING SCHEDULES K-1.

State

ZIP

County Code

Extension Requested:

Yes

A. Check all that apply:
B. Trusts - check if:
D. Was the final distribution
C. Check if:
of assets made during
Initial return
ESBT
Resident estate or trust
Testamentary
the year?
Address change
Simple trust
Nonresident
estate
or
trust
Inter vivos
Yes
Amended return
Complex trust
No
Grantor trust
Final return
Estate
E. During this taxable year, was this estate or trust notified of any federal change for any prior years?
Yes
No If yes, attach copy.
F. Is a federal Schedule K-1 attached for each beneficiary?
Yes
No If yes, how many?
If no, attach explanation.
If a nonresident estate or trust with income from both South Carolina and non South Carolina sources, complete and attach Part III, page 3 of SC1041.

1. Federal Taxable Income (Residents: Federal 1041; Nonresidents: Part III, line 22, column D) ...................................
2. Federal fiduciary exemption included in line 1 above ............................................................................
3. South Carolina modifications relating to gains allocated to principal or relating to other items not affecting federal
distributable net income (attach explanation) .....................................................................................
4. Fiduciary's share of SC fiduciary adjustment (from Part II, line 1i)
Addition
Subtraction.........................
5. Net (add line 1 through line 4)........................................................................................................
6. South Carolina fiduciary exemption (see instructions)...........................................................................
7. South Carolina taxable income (subtract line 6 from line 5) ....................................................................
8. South Carolina tax (see instructions for tax computation schedule) ..........................................................
9. Tax on Lump Sum Distribution (SC4972) and/or Active Trade or Business Income (I-335)................................
10. Nonrefundable credits (attach SC1040TC) ........................................................................................
11. Add line 8 through line 10. This balance cannot be less than zero............................................................
12. South Carolina Income Tax withheld for nonresident beneficiaries (from Part IV) .........................................
13. Total tax (add line 11 and line 12) ...................................................................................................
00 (b) SC withholding
00 ........................
14. Amount paid with: (a) Extension
15. Estimated Tax Payments
(a) Estimated Tax Payments ..........................................................................................................
(b) Amount applied from 2022 return ................................................................................................
(c) Reserved for future use ............................................................................................................
Total (add line 15a and line 15b) .....................................................................................................
16. Total payments (add line 14 and line 15) ..........................................................................................
17. Overpayment (subtract line 13 from line 16).......................................................................................
Interest
18. Late file/pay penalty
00
00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19. Penalty for underpayment of Estimated Tax (Attach SC2210).................................................................
20. Balance (subtract line 16 from line 13. Add line 18 and line 19, if applicable) ...................... BALANCE DUE
21. Amount of line 17 to be credited to 2024 Estimated Tax ........................................................................
22. Net refund (subtract line 21 from line 17) ............................................................................ REFUND

00
00

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15a
15b
15c
15
16
17
18
19
20
21
22

<

<

00
00
00
00 >
00
00
00
00 >
00
00
00
00
00
00
00
00
00
00
00
00
00
00
00

DIRECT DEPOSIT Getting a refund? Direct deposit is fast, accurate, and secure!
23. Select Direct Deposit:
24. Type of Account:
Routing
Number (RTN)

30841233

Direct Deposit (line 24 required) (for US accounts only)
Checking

Savings
Must be 9 digits. The first two numbers
of the RTN must be 01 through 32.

Bank Account
Number (BAN)

1-17
digits

2023
Page 2
Name and FEIN from page 1
PART I - SOUTH CAROLINA FIDUCIARY ADJUSTMENT
1.

Additions to federal taxable income:
a. State and local interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a
b. State or local taxes measured by income deducted on the federal return............. 1b
c. Federal net operating loss carryover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c
d. Out-of-state losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1d
e. Other additions to income (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1e
f. Total additions to federal income (add line 1a through line 1e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtractions from federal taxable income:
a. Interest on US obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a
b. State Income Tax refunds reported as income on federal return . . . . . . . . . . . . . . . . . 2b
c. South Carolina net operating loss carryover (attach schedule). . . . . . . . . . . . . . . . . . . 2c
d. Active Trade or Business Income Deduction (I-335, line 5). . . . . . . . . . . . . . . . . . . . . . 2d
e. Other subtractions from income (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e
f. Total subtractions from federal taxable income (add line 2a through line 2e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total (subtract line 2f from line 1f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fiduciary adjustment from other estates or trusts and partnership adjustment (attach schedule) . . . . . . . . . . . . . . . . . . . .
.........................
South Carolina fiduciary adjustment (add line 3 and line 4) Addition
or Subtraction

2.

3.
4.
5.

Adjustments to amount
included in federal
distributable net income

1f

2f
3
4
5

PART II - ALLOCATION OF SOUTH CAROLINA FIDUCIARY ADJUSTMENT
Complete ONLY if Part I indicates a South Carolina fiduciary adjustment. It is allocated among all beneficiaries and the fiduciary in the same ratio as
their relative shares of federal distributable net income. Nonresident beneficiaries: see Parts III and IV for computation of income.
1.

Shares of Federal
Distributable Net Income

Name of each beneficiary. Check box if beneficiary is a nonresident. All beneficiaries
receiving a federal K-1 must be listed. Use attachment if more than eight beneficiaries.
SSN/FEIN

a.
b.
c.
d.
e.
f.
g.
h.
i.

2. Amount

3. Percent

Shares of South Carolina
Fiduciary Adjustment
Addition
or Subtraction

%
%
%
%
%
%
%
%
%
100%

Fiduciary
Totals

Sign
Here

4.

I declare that this return and all attachments are true, correct, and complete to the best of my knowledge and belief.
Signature of fiduciary or officer representing fiduciary

Date

I authorize the Director of the SCDOR or delegate to discuss this return,
attachments, and related tax matters with the preparer.

Preparer's
Preparer's signature
Use Only Firm's name (or
yours if self-employed)
and address
Paid

30842231

Date

Yes

No

Taxpayer's email
Preparer's printed name

Check if
self-employed

Preparer's phone number

PTIN or FEIN
ZIP

FOR NONRESIDENT ESTATES AND TRUSTS OR RESIDENT ESTATES AND TRUSTS
WITH NONRESIDENT BENEFICIARIES
PART III - COMPUTATION OF FEDERAL TAXABLE INCOME OF THE ESTATE OR TRUST FROM
SOUTH CAROLINA SOURCES

DEDUCTIONS

INCOME

A.

These items correspond to page 1 of the federal 1041.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15a.
15b.
16.
17.
18.
19.
20.
21.
22.
23.
24.

B. Total income as
reported on
federal 1041

C. Portion of
Column B
from South Carolina
sources

Interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business income or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital gain or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rents, royalties, partnerships, other estates and trusts, etc. . . . . . .
Farm income or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ordinary gain or (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total income (add line 1 through line 8). . . . . . . . . . . . . . . . . . . . . . . .
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fiduciary fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Charitable deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Attorney, accountant, and return preparer fees . . . . . . . . . . . . . . . . .
Other deductions NOT subject to the 2% floor . . . . . . . . . . . . . . . . . .
Net operating loss deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total (add line 10 through line 15b) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 16 from line 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Estate Tax (fiduciary) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Estate Tax (beneficiary) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total (add line 18 through line 20) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxable income (subtract line 21 from line 17) . . . . . . . . . . . . . . . . . .
Total percent of all nonresident beneficiaries
(from Part II, page 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total South Carolina income of nonresident beneficiaries
(multiply line 22 by line 23). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2023
Page 3

D. Nonresident fiduciary's
portion of Column C and
capital gains not
distributed

%

PART IV - NONRESIDENT BENEFICIARIES' SHARES OF INCOME AND CREDITS
A. Name

B. Beneficiary's
percentage
from Part II

C. South Carolina
D. South Carolina
capital gain
ordinary income
(Part III, line 4,
(Part III, line 22, column
column C multiplied
C less capital gains
by column B)
multiplied by column B)

E. Less amounts
exempt from
withholding by
I-41 Affidavit

F. Tax to be withheld
(net amount of
column C, column D,
and column E
multiplied by South
Carolina's top marginal
Individual Income Tax
rate for the tax year)

a.
b.
c.
d.
e.
TOTALS

%
PART V - NONRESIDENT EXEMPTION ALLOWANCE FOR FIDUCIARY

1. Exemption allowance claimed on federal 1041
2. Ratio of total South Carolina income (Part III, line 9, column D) to total federal income (Part III, line 9, column B)
3. South Carolina nonresident fiduciary exemption (multiply line 1 by line 2) Enter on page 1, line 6

30843239

1
2
3

%

INSTRUCTIONS
SC1041 K-1

The SC1041 K-1, Beneficiary's Share of South Carolina Income, Deductions, Credits, Etc., is prepared by the estate or trust to show
each beneficiary's share of the entity's income. Each item of income is adjusted as required by South Carolina law and allocated or
apportioned to South Carolina or to states other than South Carolina.

REMINDERS
• You must add back the federal deduction for qualified business income provided in IRC Section 199A.
• You must add back any charitable deduction for a gift of land under IRC Section 170 unless the intent of the donor meets the
requirements of SC Code Section 12-6-5590.
• South Carolina specifically does not recognize IRC Section 168(k) bonus depreciation.
• The SC8736 is the extension form for partnership and fiduciary returns.
• An amended SC1041 must be filed whenever the IRS adjusts a federal 1041.

FILING REQUIREMENTS

The fiduciary of a resident estate or trust must file an SC1041, South Carolina Fiduciary Income Tax Return, if the estate or trust:
• is required to file a federal Fiduciary Income Tax return for the taxable year
• had any South Carolina taxable income for the taxable year
• had a beneficiary who is a nonresident
The fiduciary of a nonresident estate or trust must file a South Carolina Fiduciary Income Tax return if the estate or trust had income or
gain that came from South Carolina sources.
Income from South Carolina sources includes income or gain from:
• real or tangible personal property located within South Carolina
• a business, profession, or occupation carried on in South Carolina
• services performed within South Carolina
For a nonresident estate or trust, income from the following is not considered to come from South Carolina sources unless it is part of
the income from a business, trade, profession, or occupation carried on within South Carolina:
• annuities
• interest
• dividends
• gain from the sale or exchange of intangible personal property

RESIDENT AND NONRESIDENT ESTATES AND TRUSTS

A resident estate is the estate of a person who was a South Carolina resident at the time of death. All other estates are nonresident
estates.
A resident trust is any trust administered in South Carolina. All other trusts are nonresident trusts, including a trust administered outside
of South Carolina that is required to follow the laws of South Carolina for administration of the trust.
WHEN AND WHERE TO FILE
The South Carolina Fiduciary Income Tax return is due by the 15th day of the fourth month after the close of the taxable year. Failure to
file the return by the due date may result in a penalty. If you need additional time to file your SC1041, you must request an extension
by the due date of the return.
The fastest, easiest way to request your extension to file is by paying your balance due using our free online tax portal, MyDORWAY, at
dor.sc.gov/pay. Select Business Income Tax Payment to get started. Your payment on MyDORWAY automatically submits your
filing extension request. No additional form or paperwork is required. You can also request an extension by filing a paper copy of the
SC8736, available at dor.sc.gov/forms.
The SCDOR will accept a federal extension instead of the SC8736 if the South Carolina Income Tax return does not have a
balance due when the return is filed. If you use the federal extension instead of the SC8736, it is not necessary to send South
Carolina a copy of the federal extension form. Attach a copy of the federal extension when you file your SC1041 within the extended
period. Mark the Extension Requested box on page 1 of your SC1041.
Taxpayers can file their SC1041 (along with their federal fiduciary return) electronically through Modernized Electronic Filing (MeF) in a
single transmission using third party tax preparation software.
If filing by paper, mail balance due returns to SCDOR, Taxable Fiduciary, PO Box 125, Columbia, SC 29214-0038.
Mail refunds or zero tax returns to SCDOR, Nontaxable Fiduciary, PO Box 125, Columbia, SC 29214-0039.

1

PAYMENT OF TAX

The balance of tax due on page 1, line 20 of your SC1041 must be paid in full. Failure to pay your tax on time can result in penalty and
interest. The fastest, easiest way to pay your balance due is by using our free online tax portal, MyDORWAY, at dor.sc.gov/pay.
Select Business Income Tax Payment to get started.
You can also attach a check to your SC1041. Include the name and FEIN of the estate or trust, SC1041, and the tax year in the memo.
Do not send cash.
If you owe $15,000 or more in connection with any SCDOR return, you must file and pay electronically according to SC Code Section
12-54-250, available at dor.sc.gov/policy.

ACCOUNTING PERIOD

The accounting period and the method of accounting used for the SC1041 must be the same as that used for federal tax purposes. If
the estate's or trust's taxable year method of accounting is changed for federal purposes, the change applies to the SC1041.

FEDERAL ADJUSTMENTS

Any taxpayer whose income has been adjusted by the IRS should report the adjustments to the SCDOR after the federal adjustments
become final between the taxpayer and the IRS. File an amended SC1041 for the appropriate tax year to report the federal adjustment
to the SCDOR. Attach a copy of the IRS revenue agent's report showing the adjustments. Mark the Amended return box on page 1 of
your SC1041.

FIDUCIARY REPORTING OBLIGATIONS TO BENEFICIARIES

Fiduciaries must provide to each resident beneficiary the amount of fiduciary adjustment to be reported on the beneficiary's South
Carolina Individual Income Tax return. (See column 4, Part II, page 2 of the SC1041.) Fiduciaries must also provide to each
nonresident beneficiary the amount of the nonresident beneficiary's share of income and credits from Part IV, page 3 of the SC1041.
Fiduciary adjustments, beneficiaries' shares of fiduciary adjustments, and beneficiaries' shares of income and credits are computed in
Parts I, II, III, and IV, pages 2 and 3 of the SC1041. The following rules explain which of these parts should be completed.
• If a resident estate or trust has only resident beneficiaries, or if no amounts are distributable to nonresident beneficiaries, only
complete Parts I and II.
• If a resident estate or trust has nonresident beneficiaries, it is generally necessary to complete all parts. You do not have
to complete Part IV if amounts distributed to nonresidents are not taxable.
• If all income of a resident estate or trust is taxable to the fiduciary and no distributions are made, or required to be made,
only Part I must be completed.
• If a nonresident estate or trust has resident and/or nonresident beneficiaries, all parts must be completed. If all the income is
taxable to the fiduciary, only Parts III and V must be completed.

DEDUCTIBILITY OF EXPENSES OF ADMINISTRATION

Expenses of administering an estate must be deducted in the same way they are deducted for federal tax purposes. If these expenses
are deducted on the federal 1041, they may be deducted on the SC1041. If these expenses are deducted for federal Estate Tax
purposes, they may not be deducted on the SC1041.

EXEMPT TRUST

A trust exempt from federal Income Tax because of its purpose or activities is also exempt from South Carolina Income Tax.

CHARITABLE REMAINDER TRUSTS

South Carolina has adopted IRC Section 664, which outlines the basic rules for charitable remainder trusts. This means the South
Carolina Income Tax treatment of these trusts is generally the same as for federal Income Tax. After preparing the required annual
federal filing forms including Form 5227 (Split-Interest Trust Information Return), complete the information section on page 1 of the
SC1041. At the top of page 1, type or print the following statement:
This is a charitable remainder trust as described in IRC Section 664. See attached Form 5227 for South Carolina income.
To prepare federal Form 5227 for South Carolina income, prepare a separate federal Form 5227, taking into account the differences in
federal and state taxable income. For a summary of these differences, see the instructions for Part I of the SC1041. Divide the South
Carolina taxable income by the federal taxable income. Use that fraction to prorate the beneficiaries' South Carolina fiduciary
adjustment. Indicate the proration on each SC1041 K-1 form. Attach copies of all federal forms filed in the year to the South Carolina
forms.

LINE INSTRUCTIONS
Heading: Enter the name, address, FEIN, and county code of the estate or trust in the fields on page 1. Answer all questions at the top
of the SC1041. County codes are listed in these instructions.
Line 1 - Federal taxable income of fiduciary: Enter on line 1 the federal taxable income shown on page 1 of the federal 1041.
Nonresident estates and trusts should enter on line 1 the amount reported on Part III, line 22, column D of the SC1041. See instructions
for Part III - Computation of the Federal Taxable Income of the Estate or Trust from South Carolina Sources.

2

Line 2 - Federal fiduciary exemption: Enter on line 2 the fiduciary exemption claimed on the Federal Fiduciary Income Tax return to
the extent it is included in the amount reported on line 1. (See the federal 1041, available at irs.gov).
Line 3 - Modifications related to principal or non-distributable income: Some of the modifications described in Part I may apply to
gains allocated to principal or to other items not affecting federal distributable income. For example, gain (or loss) from sale of real
estate located outside of South Carolina is not taxable to South Carolina. A line 3 modification is required if property sold has a different
basis for South Carolina Income Tax purposes than it does for federal Income Tax purposes. An individual, trust, or estate may claim a
deduction of 44% of net capital gain. The deduction is computed at the beneficiary level except for capital gains taxable to the trust or
estate. Net capital gain is the excess of net long term capital gain over net short term capital loss, and is reduced by any carryover
losses. If any of these or similar modifications apply, attach a schedule listing the adjustments.
Line 4 - South Carolina fiduciary adjustment: A resident fiduciary should enter on line 4 its portion of the fiduciary adjustment from
Part II, line 1, column 4. A nonresident estate or trust should not make adjustments on this line. See instructions for Part II - Allocation
of South Carolina Fiduciary Adjustment.
Line 5 - Net: Add amounts on line 1 through line 4. Enter the result on line 5.
Line 6 - South Carolina fiduciary exemption: Enter the South Carolina fiduciary exemption on line 6. The South Carolina fiduciary
exemption for a resident estate or trust is the same amount of exemption allowable for federal Income Tax purposes. Nonresident
estates or trusts should complete Part V to determine the portion of the federal fiduciary exemption which is allowed as the South
Carolina fiduciary exemption. See instructions for Part V - Nonresident Exemption Allowance of Fiduciary.
Line 7 - South Carolina taxable income: Subtract line 6 from line 5 and enter the balance on line 7. Compute your tax on this amount.
Line 8 - South Carolina tax: To determine the amount of the Fiduciary Income Tax liability, refer to this tax computation schedule, and
compute the tax. Enter the amount on line 8.
2023 Tax Computation Schedule for Estates and Trusts
Tax Computation Schedule

Example of computation

If the amount on line 7 of the SC1041 is:

South Carolina income subject to tax on line 7 of the
SC1041 is $16,940. The tax is calculated as follows:

At
least
$0
3,330
16,680

But less
than
$3,330
16,680
or more

Compute the tax as follows:

0% times the amount
3% times the amount minus $100
6.4% times the amount minus $670

$16,940
X
.064
1,084
670
$
414

income from line 7 of the SC1041
percent from tax computation schedule
amount from tax computation schedule
tax to be entered on line 8 of the SC1041

Line 9 - South Carolina tax on lump sum distributions and/or on active trade or business income: If a resident estate or trust
received a lump sum distribution and is taxed according to IRC Section 402(e), the resident estate or trust is also subject to a South
Carolina tax on the lump sum distribution. Complete the SC4972, Tax on Lump-Sum Distributions, and attach to the return. If filing an
I-335, Active Trade or Business Income Reduced Rate Computation, attach and include the amount of tax from line 9.
Line 10 - Nonrefundable credits: Enter nonrefundable credits from the SC1040TC, 2023 Tax Credits. Attach the appropriate credit
form. The credit may not exceed the sum of the tax on line 8 and line 9.
Line 11 - Net tax: Add line 8 and line 9 less the amount on line 10. The balance cannot be less than zero.
Line 12 - South Carolina tax withheld for nonresident beneficiaries: Estates and trusts are required to withhold taxes on each
nonresident beneficiary's share of income from South Carolina sources. The withholding rate is computed at South Carolina's top
marginal Individual Income Tax rate for the tax year. For information on income from South Carolina sources see FILING
REQUIREMENTS on page 1 of the instructions. Enter the amount withheld from each nonresident beneficiary in Part IV, column F.
Prepare an SC41, Fiduciary Report on Nonresident Beneficiary Tax Withheld, for each nonresident beneficiary from whom an amount
is withheld. A copy of this report must be forwarded to the beneficiary for whom the tax is withheld so that the beneficiary may attach it
to their South Carolina Income Tax return.
Note: A trust or estate is not required to withhold taxes from South Carolina taxable income of a nonresident beneficiary who submits
an I-41, Nonresident Beneficiary Affidavit and Agreement Income Tax Withholding, and agrees to file returns and pay applicable taxes.
The trust or estate must remit all I-41 Affidavits to the SCDOR. Attach the I-41 Affidavits to the SC1041 or SC8736, Request for
Extension of Time to File South Carolina Tax Return, by the 15th day of the fourth month following the close of the trust or estate's tax
year.
Line 14 - Amount paid with request for extension and SC withholding: Enter amounts paid with Request for Extension on line
14a. Enter amount of withholding on line 14b and attach copies of your W-2s or 1099s. Include any Nonresident Seller Withholding paid
with an I-290 on line 14b. Enter the total of 14a and 14b on line 14.

3

Line 15 - Estimated tax payments: Enter in (a) the total SC1041ES Estimated Tax payments made before filing your South Carolina
tax return. Enter in (b) any amounts transferred to your Estimated Tax account from your prior year tax return.
Line 16 - Total payments: Reduce the amount on this line by any Estimated Income Tax assigned to beneficiaries. Write the assigned
amount on the dotted line portion of this line.
Line 18 - Late filing and/or late payment penalties and interest: If you have calculated failure to file/pay penalties and interest, enter
in the appropriate blanks and put the total of both on line 18.
Line 19 - Underpayment of Estimated Tax: If the fiduciary underpaid its Estimated Tax, complete the SC2210, Underpayment of
Estimated Tax By Individuals, Estates, And Trusts, and attach it to the return. If the fiduciary owes a penalty, show the amount in the
space provided. If the fiduciary is due a refund, subtract the penalty amount from the overpayment shown on line 17. If the fiduciary
owes tax, add the penalty to the tax due and show the total on line 20. The SC2210 is available at dor.sc.gov/forms.
Line 20 - Balance Due: Subtract line 16 from line 13, add line 18 and/or 19, if applicable, and enter the total on line 20.
Line 21 - Amount credited to Estimated Tax: To apply any or all of the refund toward next year's Estimated Tax, enter the amount on
line 21.
Line 22 - Net refund: If you have an amount on line 21, subtract line 21 from line 17 and enter the Net refund on line 22. Otherwise,
enter the amount from line 17.
Line 23 - Direct Deposit: Mark an X in the box to receive your refund by direct deposit. This is the fastest, easiest option for most filers.
Enter your bank information on line 24.
Line 24 - Bank Information: You must enter complete and correct account information. If you are requesting direct deposit of your
refund and your account information is not complete and correct, we will mail a paper check to the address listed on your return.
You cannot have your funds directly deposited into an account located outside of the United States.
Enter your account information.
1. Mark an X to choose checking or savings account.
2. Enter your 9 digit routing transit number (RTN). The RTN should begin with 01 through 12 or 21 through 32. Do not use a
deposit slip to verify the RTN.
3. Enter your bank account number (BAN). The BAN contains 17 or fewer alphanumeric digits. Enter the BAN from left to right.
Do not enter hyphens, spaces, special symbols, or the check number.

PART I - SOUTH CAROLINA FIDUCIARY ADJUSTMENT
Part I is for the computation of the South Carolina fiduciary adjustment. This adjustment is the net amount of all the modifications of
federal income and deductions that are permitted or required under the South Carolina Income Tax Act.
MODIFICATIONS THAT INCREASE FEDERAL TAXABLE INCOME
Line 1a - State and local interest: Enter on line 1a any state or municipal bond interest of states and political subdivisions, other than
South Carolina.
Line 1b - State or local taxes measured by income: Enter on line 1b the total of any taxes measured by income or fees or payments
in lieu of Income Taxes that were deducted on the federal Fiduciary Income Tax return.
Line 1c - Federal net operating loss carryover: Enter on line 1c the amount of any federal net operating loss (NOL) that you used in
computing the federal taxable income reported on line 1, page 1 if you have South Carolina NOL. South Carolina recognizes federal
NOL rules. No carrybacks are allowed.
Line 1d - Out-of-state losses: Enter on line 1d out-of-state losses from a business, trade, or profession claimed on the federal
Fiduciary Income Tax return.
Line 1e - Other additions to income: Enter on line 1e any other additions required. Attach an explanation for the adjustments made.
Additions to income include the federal Estate Tax deductions on income in respect of decedent; carryover of capital losses prior to
January 1, 1985; any expense deducted on the federal Fiduciary Income Tax return related to any income exempt or not taxable by
South Carolina; South Carolina tax exempt income allocable to charitable distributions; and any deduction for qualified business income
under IRC Section 199A. Nonresident sellers of South Carolina real property and associated tangible personal property that elect out of
installment sales treatment for state Income Tax purposes pursuant to Section 12-8-580 will have an addition to federal taxable income
in the year of sale so as to include the entire gain in South Carolina taxable income.
Line 1f - Total additions: Add line 1a through line 1e. Enter total on line 1f.
MODIFICATIONS THAT DECREASE FEDERAL TAXABLE INCOME
Line 2a - Interest on US obligations: Enter interest income received from obligations of the United States or its possessions to the
extent it is included in line 1, page 1.
4

Line 2b - State Income Tax refunds: Enter the amount of any state Income Tax refunds or any other Income Tax refunds to the extent
included in line 1, page 1.
Line 2c - South Carolina net operating loss (attach schedule): Enter the amount of South Carolina net operating loss carryover to
which the estate or trust is entitled. For losses occurring after December 31, 1984, compute the loss using the federal method.
Line 2d - Active Trade or Business Income Deduction: Enter the amount from I-335, line 7.
Line 2e - Other subtractions from income: Enter any other subtraction adjustment required. Additional subtraction adjustments
include the following:
• Accumulation Distribution: If during the year the estate or trust received a distribution as a beneficiary of another estate or
trust that was made from accumulated earnings from prior years, such amount may be excluded from the current South
Carolina fiduciary income to the extent it was reported in line 1, page 1.
• Out-of-State Income: If you have reported income from a business, trade, or profession located outside South Carolina, enter
this amount on line 2d. Personal service income of a resident is taxable to South Carolina.
• Reduction of Basis Due to Federal Investment Credit: If you elect to reduce basis for federal purposes due to investment
credit, the amount of reduction will be an ordinary expense for South Carolina purposes.
Line 2f - Total subtractions: Add line 2a through line 2e. Enter the total on line 2f.
Line 3 - Total: Subtract line 2f from line 1f. Enter the balance on line 3.
Line 4 - Fiduciary and Partnership adjustment (attach schedule): If during the taxable year the estate or trust was a beneficiary of
another estate or trust and is entitled to an adjustment from the other estate or trust, enter the amount of the adjustment on line 4. If
during the taxable year the estate or trust received income from a Partnership, Joint Venture, or S Corporation, enter on line 4 the
amount of the adjustment, if any.
Line 5 - South Carolina fiduciary adjustment: Add line 3 and line 4. Enter the total on line 5.

PART II - ALLOCATION OF SOUTH CAROLINA FIDUCIARY ADJUSTMENT
The South Carolina fiduciary adjustment is divided among the beneficiaries and the fiduciary in proportion to their share of the federal
distributable net income. If the separate share rule is being used, allocate the fiduciary adjustment accordingly. If there is no federal
distributable net income, each beneficiary's share of the South Carolina fiduciary adjustment must be in proportion to each share of the
estate or trust income distributed. Any balance of the South Carolina fiduciary adjustment not allocated to the beneficiaries is allocable
to the fiduciary. The estate or trust must advise each beneficiary of their share of the South Carolina fiduciary adjustment. The amount
reported in column 4 is the amount which the fiduciary is required to submit to each beneficiary. Part II provides for the computation of
the fiduciary's and beneficiary's share of the federal distributable net income. The Part II percentages are used in dividing the South
Carolina fiduciary adjustment for both resident or nonresident beneficiaries.
Column 1 - Name of beneficiary: Enter the name of the beneficiary beside letters a-h. Check the box if the beneficiary is a
nonresident of South Carolina and enter the SSN or FEIN.
Column 2 - Shares of federal distributable net income: Total federal distributable net income must be the same as line 7, Schedule
B of your federal 1041.
Column 3 - Percent: Indicate percentages with two digits, such as 32%, 3.2% and .32%.
Column 4 - Shares of South Carolina fiduciary adjustment: Enter the South Carolina Fiduciary Adjustment from Part 1, line 5 as the
total of Column 4. Multiply each percentage in Column 3 by the total in Column 4. Indicate at the top of column 4 whether the
adjustments are additions or subtractions. The amount after each name is reported as a modification, either an addition to or
subtraction from federal taxable income. If the adjustment is a subtraction, it may not offset more than the amount reportable from the
fiduciary for federal tax purposes (except in the final or termination year). Each resident beneficiary should add the explanation:
Fiduciary adjustment - (name of estate or trust). A copy of this schedule (or its information) must be provided to each resident
beneficiary. The fiduciary's share of the adjustment is entered on line 4 of page 1.
Column 2 through Column 4: Attach a detailed explanation of the allocation method used if there is no federal distributable net
income, or if the percentages do not agree with the relative shares indicated on the federal 1041, Schedules B and K-1. For an estate
or trust in which all beneficiaries are South Carolina residents, the remaining portion (Part III, Part IV, and Part V of page 3) of the return
may be omitted. If a fiduciary has nonresident beneficiaries, Part III and Part IV must be completed.
Signature: The fiduciary of the estate or trust must sign the Fiduciary Income Tax return. Check the Yes box for release of confidential
information. This authorizes the Director of the SCDOR or delegate to discuss this return, its attachments, and any notices,
adjustments, or assessments with the preparer whose name is provided.
ATTACH COPY OF YOUR FEDERAL RETURN
You must attach a copy of your federal Fiduciary Income Tax return as filed with the IRS (including all schedules) to your SC1041.
Failure to attach a copy of your federal Fiduciary Income Tax return will cause a delay in the processing of your SC1041.
5

PART III - COMPUTATION OF FEDERAL TAXABLE INCOME OF THE ESTATE OR TRUST FROM SOUTH
CAROLINA SOURCES
Part III is to be completed by all resident estates and trusts with nonresident beneficiaries, and by all nonresident estates and trusts with
income or gain from South Carolina sources. Nonresident estates or trusts should report to South Carolina only that part of their federal
taxable income derived from South Carolina sources. See Income from South Carolina Sources under FILING REQUIREMENTS for
more information. In order to determine the income to be reported and the related modifications, complete Part III.
Column B: Enter the total income or deductions reported or claimed on the federal Fiduciary Income Tax return for each item listed in
column A.
Column C: Enter the portion of each item of income reported in Column B that is derived from South Carolina sources. Use direct
accounting whenever possible. Intangible income will not be considered to be from South Carolina sources except where it is a part of a
business, trade, or occupation carried on in South Carolina. Any item entered in column C should reflect only the amount that remains
after all modifications have been performed.
• State or local Income Taxes deducted on the federal return would not be included in column C.
• State Income Tax refunds reported as income on the federal return would not be included in column C.
• Any income from other estates, trusts, or partnerships should be modified, if necessary, before the item is entered in
column C.
• Capital gains from South Carolina sources should be entered in column C only if the gain is distributed to the beneficiaries.
• Depreciation and depletion on income in respect of a decedent should be entered on the appropriate lines of column C
(whether or not passed directly to the beneficiaries).
• Deductions should be directly allocated where possible. If it is not possible to directly relate those deductions to income from
South Carolina sources, they should be apportioned by multiplying the deductions by the ratio of total South Carolina income
(line 9, column C) divided by total federal income (line 9, column B).
• Net income of the estate or trust from South Carolina sources, after all modifications, is to be entered on line 22, column C.
• Enter on line 23, column C only the total percentages of all nonresident beneficiaries. These percentages come from Part II,
page 2.
• Enter on line 24, column C the total income from South Carolina sources of all nonresident beneficiaries. This amount is
computed by multiplying line 22, column C by the percentage entered on line 23, Column C.
Column D: Only nonresident fiduciaries complete this column. Enter the portion of column C applicable to the fiduciary. The amount to
be entered in column D is computed by multiplying each entry in column C by the fiduciary's percentage of the South Carolina fiduciary
adjustment as shown in Part II, page 2. A capital gain from South Carolina sources that is not distributed to the beneficiaries should be
entered on line 4 of column D. Line 22, column D is the net income of the nonresident estate or trust from South Carolina sources
applicable to the fiduciary which should be entered on line 1, page 1.

PART IV - NONRESIDENT BENEFICIARIES' SHARES OF INCOME AND CREDITS
Column A: Enter the names of the nonresident beneficiaries receiving distributable South Carolina income. If the SSNs or FEINs are
not listed on either page 2 or on the SC41, attach a schedule of this information. It is important that the correct SSNs or FEINs be listed
for each beneficiary to assure proper posting to their accounts.
Column B: Enter each nonresident beneficiary's percentage as computed in Part II, page 2.
Column C: Enter the capital gain (loss) reportable to South Carolina by each nonresident beneficiary.
Column D: Enter each beneficiary's portion of the total ordinary income from South Carolina sources by multiplying column B by the
amount on Part III, line 22, column C after subtracting any capital gain on line 4.
Column E: Enter the amount of each nonresident beneficiary's income that is exempt from withholding by I-41 Affidavit.
Column F: Add column C and column D and subtract column E amounts. Enter in column F withholding on these amounts for each
beneficiary. The withholding is computed at South Carolina's top marginal Individual Income Tax rate for the tax year. The tax reported
in column F is to be withheld by the fiduciary from the beneficiary. It is to be paid by the fiduciary to the state of South Carolina at the
time Estimated Tax payments are due. If any tax is required to be withheld, complete the SC41 for each nonresident beneficiary.

6

PART V - NONRESIDENT EXEMPTION ALLOWANCE FOR FIDUCIARY
Part V is to be completed only by nonresident estates or trusts. This part is to assist in the computation of the exemption allowance
available to the nonresident estate or trust.
Line 1 - Exemption allowance per federal return: Enter the exemption allowance claimed on the federal Fiduciary Income Tax return.
Line 2 - Ratio: Divide the amount shown on Part III, line 9, column D by the amount shown on Part III, line 9, column B.
Line 3 - South Carolina nonresident fiduciary exemption: Multiply the amount on line 1 by the percentage on line 2 and enter the
result on Part V, line 3 and on line 6 on the SC1041.
WHICH FIDUCIARIES MUST FILE A DECLARATION OF ESTIMATED TAX?
Generally, a fiduciary must file a Declaration of Estimated Tax if the expected total amount of tax owed when the return is filed will be
$100 or more. Estates are not required to file a Declaration of Estimated Tax for the first two tax years after the decedent's death. The
fastest, easiest way to pay your balance due is by using our free online tax portal, MyDORWAY, at dor.sc.gov/pay. Select Business
Income Tax Payment to get started. Do not submit the SC1041ES if you pay online.
You can also attach a check to the completed SC1041ES, South Carolina Declaration of Estimated Tax for Fiduciaries. Include the
name of the fiduciary, FEIN, SC1041ES, and the tax year in the memo. Do not send cash. Attach payment to the SC1041ES and mail
to SCDOR, Estimated Tax, PO Box 125, Columbia, SC 29214-0038. The SC1041ES is available at dor.sc.gov/forms.
Any fiduciary required to file a Declaration of Estimated Tax must estimate and pay at least 90% of the final actual tax liability or an
amount equal to 100% of the tax from the prior year's return (if the return covered all twelve months of the year). Certain estates and
trusts cannot base their Declaration of Estimated Tax on 100% of their prior year's tax liability. Estates and trusts with an adjusted gross
income of more than $150,000 as shown on the return for the preceding tax year must pay 110% of their prior year's tax liability. To
compute adjusted gross income use federal guidelines and make South Carolina adjustments. Failure to meet the estimate
requirements may subject the fiduciary to an underpayment penalty. Underpayment of estimate penalty is calculated on the SC2210.
The SC2210 is available at dor.sc.gov/forms.

COUNTY CODES
COUNTY
Abbeville ..............................
Aiken ...................................
Allendale .............................
Anderson .............................
Bamberg ..............................
Barnwell ..............................
Beaufort ...............................
Berkeley ..............................
Calhoun ...............................
Charleston ...........................
Cherokee .............................
Chester ................................
Chesterfield .........................
Clarendon ............................
Colleton ...............................
Darlington ............................

CODE
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16

COUNTY

CODE

Dillon ...................................
Dorchester ...........................
Edgefield .............................
Fairfield ...............................
Florence ..............................
Georgetown .........................
Greenville ............................
Greenwood ..........................
Hampton ..............................
Horry ...................................
Jasper .................................
Kershaw ..............................
Lancaster ............................
Laurens ...............................
Lee ......................................
Lexington .............................

17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

COUNTY

CODE

McCormick ..........................
Marion .................................
Marlboro ..............................
Newberry .............................
Oconee ................................
Orangeburg .........................
Pickens ................................
Richland ..............................
Saluda .................................
Spartanburg ........................
Sumter .................................
Union ...................................
Williamsburg ........................
York .....................................

33
34
35
36
37
38
39
40
41
42
43
44
45
46

APO/FPO Addresses .............................................................................................................................................
Outside of South Carolina ......................................................................................................................................
Outside of United States ........................................................................................................................................

99
99
88

Social Security Privacy Act Disclosure
It is mandatory that you provide your Social Security Number on this tax form if you are an individual taxpayer. 42 U.S.C. 405(c)(2)(C)(i)
permits a state to use an individual's Social Security Number as means of identification in administration of any tax. SC Regulation
117-201 mandates that any person required to make a return to the SCDOR must provide identifying numbers, as prescribed, for
securing proper identification. Your Social Security Number is used for identification purposes.
The Family Privacy Protection Act
Under the Family Privacy Protection Act, the collection of personal information from citizens by the SCDOR is limited to the information
necessary for the SCDOR to fulfill its statutory duties. In most instances, once this information is collected by the SCDOR, it is protected
by law from public disclosure. In those situations where public disclosure is not prohibited, the Family Privacy Protection Act prevents
such information from being used by third parties for commercial solicitation purposes.
7

TAX WITHHELD FOR NONRESIDENT BENEFICIARIES
Under South Carolina (SC) law, the executor, administrator, or other fiduciary of an estate or trust is required to withhold on the amount
of SC taxable income distributable to each nonresident beneficiary. The withholding is computed at SC's top marginal Individual Income
Tax rate for the tax year. The amount withheld from each beneficiary will be reflected on Part IV, column F of the SC1041. Complete an
SC41 for each beneficiary from whom an amount is withheld. Be sure to put the current year in the space provided.
The SC41 may be submitted with the SC1041 or separately. If mailing separately, mail to SCDOR, Taxable Fiduciary, PO Box 125,
Columbia, SC 29214-0038.
Complete three copies and distribute them to:
• the beneficiary from whom the tax is withheld, so that the beneficiary may attach it to their SC Income Tax return
• the beneficiary, for their records
• the fiduciary, for their records
The amount of tax withheld by the fiduciary should be claimed as SC Income Tax withheld on the SC Income Tax return.
Any Estimated Income Tax payments assigned to beneficiaries must be reported to them on the SC41, along with instructions
to enter this amount as tax withheld on their SC Income Tax return. The SC41 must be attached to the beneficiary's return to
claim this payment.

SC41

STATE OF SOUTH CAROLINA - INCOME TAX

20

FIDUCIARY REPORT OF NONRESIDENT BENEFICIARY TAX WITHHELD
Estate's or Trust's tax year end

Nonresident beneficiary's name

SSN/FEIN

Name of estate or trust

Street address

County

Nonresident beneficiary's share of distributable income
from South Carolina sources

City

State

ZIP

Ordinary income . . . . . . . . . . . . . . . . . .
Long-term capital gain . . . . . . . . . . . . .
Short-term capital gain . . . . . . . . . . . . .
Amount of tax withheld . . . . . . . . . . . . .

FEIN

$
$
$
$

STATE OF SOUTH CAROLINA - INCOME TAX

SC41

20

FIDUCIARY REPORT OF NONRESIDENT BENEFICIARY TAX WITHHELD
Estate's or Trust's tax year end

Nonresident beneficiary's name

SSN/FEIN

Name of estate or trust

Street address

County

Nonresident beneficiary's share of distributable income
from South Carolina sources

City

State

ZIP

Ordinary income . . . . . . . . . . . . . . . . . .
Long-term capital gain . . . . . . . . . . . . .
Short-term capital gain . . . . . . . . . . . . .
Amount of tax withheld . . . . . . . . . . . . .

FEIN

$
$
$
$

STATE OF SOUTH CAROLINA - INCOME TAX

SC41

20

FIDUCIARY REPORT OF NONRESIDENT BENEFICIARY TAX WITHHELD
Estate's or Trust's tax year end

Nonresident beneficiary's name

SSN/FEIN

Name of estate or trust

Street address

County

Nonresident beneficiary's share of distributable income
from South Carolina sources

City

State

ZIP

Ordinary income . . . . . . . . . . . . . . . . . .
Long-term capital gain . . . . . . . . . . . . .
Short-term capital gain . . . . . . . . . . . . .
Amount of tax withheld . . . . . . . . . . . . .

FEIN

$
$
$
$