South Carolina Tax on Lump Sum Distributions

Tax on Lump Sum Distributions
SC4972_3107.pdf
1350

STATE OF SOUTH CAROLINA

DEPARTMENT OF REVENUE

SC4972

From Qualified Retirement Plans

(Rev. 4/18/23)
3107

TAX ON LUMP-SUM DISTRIBUTIONS
dor.sc.gov

Attach to your SC1040 or SC1041

Name

2023
SSN or FEIN

Part I

Complete this part to choose capital gain election (see federal instructions)

1. Capital gain reported in Box 3 of your 1099-R................................................................................ 1.
2. Multiply line 1 by 3.92%
If you choose to use Part II, continue to line 3. Otherwise, enter this amount on your SC1040, line 7 or
SC1041, line 9........................................................................................................................... 2.

Part II

Complete this part to choose the 10-year tax option (see federal instructions)

3. Amount from line 10 of your federal 4972 ...................................................................................... 3.
4. Retirement deduction (see instructions)
a) Taxpayer (date of birth:

)................................................................................ 4a.

b) Spouse (date of birth:

) ................................................................................ 4b.

c) Surviving spouse (date of birth of deceased spouse:

) ........................................ 4c.

5. Age 65 and older deduction (see instructions)
a) Taxpayer (date of birth:
b) Spouse (date of birth:

)................................................................................ 5a.
) ................................................................................. 5b.

6. Add line 4 and line 5................................................................................................................... 6.
7. Total taxable amount (subtract line 6 from line 3) ........................................................................... 7.
8. Current actuarial value of annuity from Box 8 of your 1099-R ........................................................... 8.
9. Adjusted total taxable amount (add line 7 and line 8). If this amount is $70,000 or more, skip line 10
through line 13, enter this amount on line 14, then go to line 15 ....................................................... 9.

10. Multiply line 9 by 50%. If greater than $10,000, enter $10,000....................................................... 10.
11. Subtract $20,000 from line 9. If less than zero, enter 0.................................................................... 11.
12. Multiply line 11 by 20% ............................................................................................................... 12.
13. Minimum distribution allowance (subtract line 12 from line 10) ......................................................... 13.
14. Subtract line 13 from line 9 or enter the amount from line 9 if the amount is $70,000 or more. If line 8
is blank, skip line 15 through line 17, then go to line 18 ................................................................... 14.

15. Divide line 8 by line 9 and enter the result as a decimal (round to at least four places) ........................ 15.
16. Multiply line 13 by line 15 ............................................................................................................ 16.
17. Subtract line 16 from line 8.......................................................................................................... 17.
18. Multiply line 14 by 10% ............................................................................................................... 18.
19. Tax on amount from line 18 (use the Tax Computation Schedule on page 2) ..................................... 19.
20. Multiply line 19 by 10. If line 8 is blank, skip line 21 through line 23 and enter this amount on line 24,

then go to line 25 ....................................................................................................................... 20.

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21. Multiply line 17 by 10% ............................................................................................................... 21.
22. Tax on amount from line 21 (use the Tax Computation Schedule below) ........................................... 22.
23. Multiply line 22 by 10.................................................................................................................. 23.
24. Subtract line 23 from line 20 (multiple recipients, see federal instructions) ......................................... 24.
25. Tax on lump-sum distribution (add line 2 and line 24)...................................................................... 25.
Enter this amount on SC1040, line 7 or SC1041, line 9.

INSTRUCTIONS
South Carolina's provisions for lump-sum distributions are the same as the federal provisions. If you used the federal 4972 for a
lump-sum distribution, you must use the SC4972 to compute the South Carolina tax.

Line 4: Retirement deduction
An individual under the age of 65 may deduct up to $3,000 of qualified retirement income. An individual age 65 or older may
deduct up to $10,000 of qualified retirement income.
A surviving spouse receiving qualified retirement income from a deceased spouse may deduct up to $3,000 or $10,000,
whichever would apply if the deceased spouse were alive. The surviving spouse retirement deduction is in addition to the
individual's retirement deduction from their own plan.
The retirement deduction can be claimed on this form to the extent it is not claimed on the SC1040 or the Schedule NR.
If an age 65 and older deduction has been claimed on the SC1040 or the Schedule NR, do not include any individual retirement
deduction on line 4.

Line 5: Age 65 and older deduction
Beginning in the tax year that a resident individual reaches age 65, a deduction of $15,000 can be claimed against any South
Carolina income. This deduction 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 the SC1040 or the Schedule
NR.
For additional information on the retirement deduction and age 65 and older deduction, see the SC1040 instructions, available at
dor.sc.gov/forms.

2023 Tax Computation Schedule for Line 19 and Line 22
If the amount on line 18 or line 21 is:
At
least

But
less than

$0
3,330
16,680

$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

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.

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