Life changes
You Moved to South Carolina: Filing Your First SC Return
The year you move, you usually file two state returns: a part-year return for the state you left and one for South Carolina. Each taxes only part of your year.
Reviewed by LaToya Clark-Thompson, FounderLast updated
What changes on your return
Your federal return does not change because you moved; it covers the whole year. The state returns are where the move shows. As a part-year resident of South Carolina, you file the SC1040 with Schedule NR. South Carolina starts from your federal adjusted gross income, then uses Schedule NR to tax income earned while you were a resident, plus any South Carolina-source income from before the move.
The state you left generally taxes the income you earned while you lived there, through its own part-year or nonresident return. If you moved from a state with no income tax, there may be no second return at all. If you kept income from your old state, such as a rental property or a job you still commute to, you may owe that state as a nonresident, and South Carolina generally gives a credit for tax paid to another state on the same income.
South Carolina points worth knowing
- Social Security benefits are not taxed by South Carolina
- South Carolina allows a deduction for a portion of retirement income, larger for older residents, and military retirement income is exempt
- There is no South Carolina inheritance or estate tax
- Moving expenses are not deductible on the federal return for most people; active-duty military moving under orders and certain intelligence community employees are the exceptions. See military moves.
- Your vehicle will be subject to county property tax once registered here, billed by the county rather than through your income tax return
If you bought a home here, apply to your county for the legal residence assessment. See buying a home.
What to bring to your appointment
- The date you moved and your old and new addresses
- Every W-2. Check boxes 15 to 17: if your employer withheld for the old state after you moved, or did not start South Carolina withholding, that needs to be sorted on the returns.
- Pay stubs from around the move if the W-2 does not split income by state
- Form 1099-R or SSA-1099 if you are retired
- Closing documents if you sold a home in your old state or bought one here
- Last year’s returns from your old state
Common mistakes
- Filing as a full-year resident of either state in the move year
- Not updating state withholding with your employer, especially if you work remotely for a company based elsewhere
- Paying the old state on income earned after the move
- Missing the South Carolina retirement income deduction
- Not keeping proof of the move date (lease, closing statement, utility start dates, driver’s license), which is what decides residency if a state ever asks
When it is worth having a preparer
A move year is when two states each want their share and software makes it easy to count the same income twice. If you had income in both states, work remotely, are retired, or sold a home in the move, it is worth having us prepare all of the returns together. We are based in Easley and work with clients across the Upstate, and we prepare the other state’s part-year return too. Start with tax preparation or see our first-time filing in SC guide.
Frequently asked questions
Do I have to file two state tax returns the year I move to South Carolina?
Usually, yes, if the state you left has an income tax. You file a part-year resident return there for the income earned while you lived there, and a South Carolina part-year return (SC1040 with Schedule NR) for the rest. If you came from a state without an income tax, only South Carolina’s return applies. We prepare both together so income is not counted twice.
Does South Carolina tax my Social Security?
No. South Carolina does not tax Social Security benefits. Because the state starts from your federal adjusted gross income, the taxable part of your benefits is subtracted on the South Carolina return. Other retirement income, such as pensions and IRA withdrawals, may qualify for a separate retirement income deduction, and military retirement income is exempt. Bring your SSA-1099 and 1099-R forms.
When do I become a South Carolina resident for tax purposes?
Generally on the date you establish South Carolina as your domicile, meaning the place you intend to make your permanent home. Signs of that include where you live, register to vote and drive, register vehicles and keep your belongings. Keep records of the move date. SCDOR is the authority if a residency question comes up, so consistent paperwork matters.
I work remotely for an out-of-state company. Which state taxes my pay?
Once you live in South Carolina and do the work here, South Carolina generally taxes it. A few states try to tax remote workers whose employer is located there, which can create a second return and a credit. Ask your employer to switch your state withholding to South Carolina and bring your W-2 so we can check what was withheld where.
Not the question you had? The full tax FAQ covers more ground, and our client reviews say what the work is actually like.
Related pages
You moved out of South Carolina
The final part-year SC return, income SC still taxes and keeping your new state straight.
Learn moreYou bought a home
Mortgage interest, points, property tax, itemizing and the SC primary residence filing.
Learn moreYou sold a home
The main home exclusion, Form 1099-S, basis and improvements, and when a sale is taxed.
Learn moreYou got married
Filing status, withholding, name changes and Marketplace coverage after the wedding.
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