SC 1040-ES: Individual Declaration Of Estimated Tax

The SC 1040ES, also known as the South Carolina Individual Declaration of Estimated Tax, is a form used by residents of South Carolina to report and pay estimated taxes throughout the year. Estimated taxes apply to income that isn't subject to withholding, meaning taxes aren't automatically deducted from your paycheck.

Who Needs to File a SC 1040ES?

In general, you'll need to file a South Carolina Declaration if you expect to owe $100 or more in state income tax when you file your regular tax return (SC1040). This can include income from:

• Self-employment
• Interest and dividends
• Rental income
• Prizes and awards
• Alimony

Exceptions to Filing:

• If you had no tax liability or a very small tax liability in the prior year (less than $100), you might not need to file an SC 1040ES.
• However, it's always recommended to consult with a tax advisor or the South Carolina Department of Revenue (SCDOR) to determine your specific filing requirements.

How Does Estimated Tax Work?

Estimated tax payments are essentially prepayments on your annual tax obligation. You estimate your total tax liability for the year and then pay it in installments throughout the year. This helps ensure you're not hit with a large tax bill come filing time.

Payment Due Dates:

South Carolina follows a quarterly estimated tax payment schedule. The due dates for 2024 are:

• April 15th: First installment (or full payment if you choose)
• June 17th: If you meet the filing requirement after April 1st and before June 1st
• September 16th: If you meet the filing requirement after June 1st and before September 1st
• January 15th, 2025: Final installment (or you can file your SC1040 by February 3rd and pay the remaining balance due)

How to File an SC 1040ES?

There are several ways to file an SC 1040ES:

Step 1: Download the form: You can download the latest version of the SC 1040ES form attached below.

Step 2: Mail the form: Mail the completed form with your payment voucher to the address provided on the form attached below.

OR

File electronically: You can file your estimated tax payments electronically through the SCDOR's online portal https://dor.sc.gov/.

How much estimated tax should I pay?

Use the Estimated Tax Worksheet provided with the SC 1040ES form or consult your tax advisor to estimate your income tax liability and calculate your required estimated tax payments.

Can I adjust my estimated tax payments throughout the year?

Yes. You can revise your estimated tax payments based on changes in your income throughout the year. New vouchers are issued with each filing deadline to reflect any adjustments.

What happens if I underpay my estimated taxes?

Underpaying your estimated taxes can lead to penalties from the SCDOR. However, you can avoid penalties if you owe less than $1,000 in tax after withholding and pay the full amount due by the filing deadline of your tax return.

What happens if I overpay my estimated taxes?

Any overpayment will be refunded to you along with your tax refund when you file your final tax return (SC1040).