South Carolina Tax Extension: The Ultimate Guide
Your Takeaways:
- South Carolina gives you 6 months to file your individual income tax return but not to pay any taxes due.
- To avoid penalties, you must pay at least 90% of your tax liability by the original due date.
- Filing for a federal extension will automatically give you a South Carolina extension if no state tax is due.
- You can file for a South Carolina extension online through MyDORWAY or by mail with Form SC4868.
Need more time to file your South Carolina taxes?
You're not alone!
Whether you're waiting on a W-2 or need extra time, a tax extension can be a lifesaver. But here's the thing: while you get more time to file your return, you still have to pay any taxes due by April 15th.
Don't let the fine print get you down—keep reading to learn how a South Carolina tax extension can save you from penalties and get you back in tax shape!
What is a Tax Return Extension?
A tax extension gives you extra time—usually 6 months—to file your individual income tax return. But remember, the extension gives you more time to file, not more time to pay.
Any taxes due must be paid by April 15th, or you'll face penalties and interest.
A tax extension will prevent late filing penalties for individuals who need more time to get their tax documents in order or are waiting on additional tax forms.
However, you must pay at least 90% of your estimated tax liability to avoid financial penalties.
Important South Carolina Extension Deadlines
Original Tax Deadline: April 15th
Tax Extension Filing Deadline: April 15th (same day as original due date)
New Deadline with Extension: October 15th
How to File Your Tax Extension In South Carolina
Filing for a South Carolina tax extension is straightforward and can be done in two main ways: online or by mail. Below is a step-by-step guide to help you file for an extension:
Step-by-Step Guide to Filing a South Carolina Tax Extension
1. Estimate Your Tax Liability: Determine how much you owe for the year. You must pay at least 90% of this amount by April 15th to avoid penalties.
2. Complete Form SC4868:
- Online Filing: Visit MyDORWAY and select the "Individual Income Tax Payment" option. You can pay your estimated taxes and automatically request an extension.
- Mail-In Filing: If you prefer to file by mail, complete Form SC4868. Ensure all details, such as your Social Security number and payment amount, are correct.
3. Submit Your Payment:
- Online Payment: You can pay with ACH, Debit, or Credit Card through the online payment portal Using MyDORWAY. Once your payment is processed, your extension is automatically granted.
- Mail Payment: If mailing, send a check or money order payable to the "SCDOR" with Form SC4868 to the South Carolina Department of Revenue.
4. Retain Records: Whether you file online or by mail, save a copy of your submission and any proof of payment for your records.
5. File Your Final Return: By October 15, complete and file your South Carolina tax return. If you've been granted a federal extension (FORM 4868) , mark the appropriate box on your SC1040.
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Do I Need to File a South Carolina Tax Extension if I Filed a Federal Extension?
Sometimes, filing for a federal extension will automatically extend your South Carolina filing deadline. If no taxes are due in South Carolina, you do not need to submit Form SC4868, as South Carolina will accept your federal extension. However, if you owe state taxes, you must file SC4868 and pay the balance by the original deadline.
What Happens if I Don't Pay My Taxes on Time?
If you don't pay at least 90% of your estimated tax liability by April 15th, South Carolina imposes a penalty of 0.5% per month on the unpaid balance, in addition to interest charges. These penalties can quickly add up, so paying as much as possible by the original deadline.
Example: Estimating Your Payment
Let's say your total tax liability for the year is $8,000. To avoid penalties, you must pay at least $7,200 (90%) by April 15th. If you've already paid $6,000 through withholdings, you must make an additional payment of $1,200 when filing Form SC4868.
Penalties for Late Filing and Payment
- Late Filing Penalty: 5% per month (up to a maximum of 25%) on the unpaid balance.
- Late Payment Penalty: 0.5% per month on the unpaid tax, starting after April 15.
- Interest: Charged on any unpaid tax at the federal rate, compounded daily.
Understanding South Carolina's Tax Landscape: Key Insights from Tax Liability and County Contributions
Tax Liability Distribution (Pie Chart)
The individual tax liability numbers in South Carolina show that over 41% of residents owe zero state income tax, $0. While 5.8% owe over $7,000. This chart will help you see how you compare to others in the state. The big difference in liability will come into play when policymakers and the public discuss fairness in taxation and resource distribution.
Individual Income Tax by County
The following counties contribute the highest state income tax revenue, with Charleston County leading at over $725 million. These counties are urbanized areas with larger populations and higher average income levels, which explains their substantial contributions to the state's tax revenue.
On the other hand, counties like Hampton and Marlboro contribute the least to the state's tax revenue. These are smaller, more rural counties with lower population density and economic activity, resulting in significantly lower tax liabilities.
This data is important because it shows regional economic disparities. Knowing which counties contribute more to state tax revenue will help with financial planning and highlight areas that need economic development. For individual taxpayers, this will also show how their county compares to others and the local economy.
FAQs
Do I need to pay my South Carolina taxes when I file a tax extension? Yes, you must pay at least 90% of your estimated taxes by April 15th. The extension only applies to the filing deadline, not the payment deadline.
Who can file for a South Carolina tax extension? Any individual, nonresident partner or shareholder can file for a South Carolina tax extension if they need more time to file their return.
What are the penalties for late payment of South Carolina taxes? Late payment incurs a 0.5% monthly penalty on the unpaid balance, plus interest compounded daily.
Work with Our Experts!
While state tax extensions can be simple, navigating federal tax extensions can be tricky. Luckily, you don't have to do it alone—work with our tax experts to ensure everything is filed correctly and on time. Click here now to get started.
Conclusion
Filing a tax extension in South Carolina is helpful if you need more time to file your tax return.
However, paying at least 90% of your taxes by April 15th is essential to avoid penalties.
Whether you file online through MyDORWAY or by mail using Form SC4868, following the correct steps will ensure a smooth extension process.
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