How to apply for South Carolina income tax: age 65 and older deduction and retirement income deduction

Who it's for

South Carolina residents can take a $15,000 deduction against any South Carolina income starting in the tax year they turn 65. People 65 or older can also deduct up to $10,000 of qualified retirement income from their own plan (up to $3,000 if under 65), but any retirement deduction reduces the $15,000 age deduction. Social Security and railroad retirement taxed on the federal return are not taxed by South Carolina. Claim the deductions on your SC1040 state income tax return.

What you'll need

• SC1040 state income tax return
• Federal return (federal adjusted gross income)
• Forms 1099-R for retirement income

Where to apply

What to say when you call

"Hello, I'm calling to ask about South Carolina income tax: age 65 and older deduction and retirement income deduction. I'd like to know whether I may qualify, what documents I need, and whether I can apply online, by mail, by phone, or in person. I understand I may need sC1040 state income tax return, federal return (federal adjusted gross income), forms 1099-R for retirement income — is anything else required? What is the best next step?"

Tip: have a pen ready, ask for the person's name, and write down any case or reference number they give you.

Step by step

1. Gather your SC1040 state income tax return, your federal return that shows your federal adjusted gross income, and any Forms 1099-R for retirement income.
2. Check the South Carolina rules for the age 65 and older deduction and the retirement income deduction before you file. The amounts listed here come from the 2025 SC1040 instructions, so confirm them on the 2026 instructions when they are published.
3. Complete your SC1040 and claim the age 65 and older deduction if you qualify.
4. Add the retirement income deduction on your SC1040 if you qualify and have Forms 1099-R. Remember that any retirement income deduction reduces the $15,000 age 65 deduction.
5. Submit your South Carolina return online, or call 1-844-898-8542 if you need help applying by phone.
6. File again each year if you want to claim these deductions for a new tax year.

What to expect: After you submit your South Carolina return, the Department of Revenue reviews it as part of normal tax filing. Processing times vary, so ask the agency if you need an estimate. These deductions only help if you owe South Carolina income tax. If you claim them this year, plan to claim them again when you file next year, and confirm the deduction amounts in the newest SC1040 instructions.

Renewals

annual