Article: 50454
Overview
South Carolina offers a nonrefundable income tax credit to eligible taxpayers who contribute to a qualified retirement plan, such as an IRA, 401(k), or similar account. This credit helps lower- and moderate-income individuals save for retirement by providing a tax incentive for making eligible contributions.
Eligibility Requirements
You may be eligible for the credit if:
- You are a South Carolina resident,
- You made contributions to a qualified retirement plan (e.g., Traditional IRA, Roth IRA, 401(k), 403(b)),
- You did not claim a similar federal saver’s credit (Form 8880),
- Your federal Adjusted Gross Income (AGI) is below the qualifying threshold.
Note: You may not claim this credit if you already claimed the federal retirement savings contribution credit.
Credit Amount
The credit amount is based on your federal AGI and your eligible contribution amount. The maximum credit is $50 per taxpayer (or $100 for joint filers if both are eligible).
The credit cannot exceed your SC tax liability and cannot be carried forward.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: “I’d like to see the forms I’ve filled out or search for a form.”
- In the dropdown menu, select South Carolina.
- Click on the Credits tab.
- Click on “Qualified Retirement Plan Contribution Credit” to open the form.
- Enter all applicable information.
- Click ‘Save‘ once complete.
Additional Resources
For further information see: https://dor.sc.gov/forms-site/Forms/TC29.pdf