South Carolina Tax Filing: SC1040, MyDORWAY and Retirees

Updated October 3, 2026

How South Carolina taxes income

South Carolina taxes income earned inside the state. Its Department of Revenue says residents who must file a federal return are usually required to file a South Carolina return as well. For the 2025 tax year, the Department's page lists rates that start at zero and rise to a top rate. Rates are set by law, so use the current tax tables in the SC1040 booklet and do not rely on last year's numbers.

A few features set South Carolina apart from its neighbors.

• Social Security is exempt. The Department's FAQ says so directly.
• Retirees get a deduction. There is a retirement income deduction, and the limit is larger once you reach age 65. A separate age 65 and older deduction can apply on top of it.
• Some seniors may not need to file. The FAQ says a resident age 65 or older may skip the return if income stays under the Department's thresholds. Read the FAQ before you decide.
• The two wage earner credit requires married filing jointly status.

Filing and paying through MyDORWAY

MyDORWAY is the Department's free, secure portal. You can set up a tax account, file returns, schedule payments and upload documents there. The Department also lists free software for lower-income filers and paid options from approved providers.

It discourages paper. Its own words are that paper increases your chances of errors and takes longer to process. Direct deposit is the fastest way to get a refund.

You have three payment choices.

• MyDORWAY. This is the Department's recommended route.
• ACH debit. Check the box on the SC1040 return.
• Check by mail. It must be drawn on a U.S. bank. Use Form SC1040V as the payment voucher.

The Department warns about third-party payment sites. They can add fees and slow down processing. Pay the Department directly instead.

The due date and extension rules

South Carolina posts the filing date for each tax year on its own pages. For the 2025 tax year, those pages showed a later date than the usual April 15. Because the date can move, check the Department's page for this year's date before you plan around April 15.

To ask for more time, use one of two routes.

1. Make an Extension Payment in MyDORWAY before the due date.
2. Mail Form SC4868 with your payment.

Both routes involve sending money with the request. The IRS says an extension of time to file is not an extension of time to pay, so any tax you owe should be paid by the original date. Our extension guide covers the federal rules. See our tax deadlines page for federal dates too.

Part-year and nonresident returns

The Department defines a resident as someone whose permanent home is in South Carolina and whose financial, social and family life is centered here. A nonresident keeps a permanent home elsewhere all year. A nonresident files if they earn South Carolina income from wages, rental property or a business, and uses Form SC1040NR.

Part-year residents get a choice that many people miss. You can compute tax as a full-year resident, or use Schedule NR to report only South Carolina income. The Department says you may pick the method that helps you most. Run both before you file.

If you live here but work in another state, Form SC1040TC claims a credit for tax paid there. The credit covers tax paid to a state or a political entity equal to a state, such as a Canadian province. It does not cover foreign countries.

Moving to Florida? Your last South Carolina return depends on when your domicile changed. Our moving to Florida guide explains what to document.

Military families and retirees

• Guard and Reserve training pay. Members do not pay South Carolina tax on compensation for the customary annual training period.
• Military retirement. Military retirees can deduct all of their military retirement income.
• Spouses. South Carolina recognizes the Military Spouses Residency Relief Act. Military families can choose a domicile for tax purposes under it.

Other retirees should look at the Department's retirement deductions page before filing, because the deduction is separate from the Social Security exemption. Our veteran tax benefits overview covers the federal side.

Paperwork and estimated payments

Gather your W-2 forms, 1099 forms, Social Security numbers and receipts before you start. The Department suggests sorting records into groups, such as charitable gifts, medical costs, property taxes and mortgage interest. Your filing status on the South Carolina return should match the one on your federal return. If you worked in another state, attach that state's return when you claim a credit.

If you are self-employed, do contract work or have income with no tax withheld, you may need to make quarterly payments. South Carolina has its own estimated tax form, SC1040ES. The IRS also says sole proprietors, partners and S corporation shareholders generally must pay federal estimated tax if they expect to owe.

What delays a South Carolina refund

• Incomplete mailing address. The Department lists this as a common error.
• Wrong routing or account number for direct deposit.
• Mismatched Social Security numbers.
• Missing W-2 or 1099 copies. Attach every one.
• Filing on paper. It takes longer to process.
• Filing status that differs from the federal return.

You can check refund status on the Department's refund page. Direct deposit is the fastest option, and paper checks go to the address on your return.

Filing from South Carolina with Zero Fuss Taxes

We prepare returns remotely from our Longwood, Florida office for clients in all 50 states, so you never need to visit. A real preparer reviews and signs your return, and you see a written quote before any work starts.

FAQ

Nearby state guides

Sources

• dor.sc.gov/tax/individual-income
• dor.sc.gov/iit/iit-file-pay-options
• dor.sc.gov/iit/prepare-you-file
• dor.sc.gov/iit/prepare-you-file/iit-faqs
• irs.gov/filing/individuals/when-to-file
• irs.gov/businesses/small-businesses-self-employed/estimated-taxes

General information, not tax advice for your specific situation. Rules can change, so check the official sources below. Zero Fuss Taxes is a PTIN-holding tax preparation firm. We are not a CPA firm, enrolled agents or attorneys.