How is a composite return completed?
A. A partnership, S-corporation, or LLC taxed as a partnership or S-corporation must compute the tax separately on each participant’s share of income and add the tax together to arrive at the total tax due. The methods available depend on whether the partner, shareholder or member has filed an I-338 Composite Return Affidavit with the department through the partnership, S-Corporation or LLC. An I-338 affidavit states that the partner, shareholder or member has no other income taxable to South Carolina. If a partner, shareholder or member completes an I-338 affidavit, the composite return can either prorate the standard deduction or itemized deductions and personal exemptions for each participant or not include them. If a partner, shareholder or member does not provide an I-338 affidavit, the composite return must not include any personal deductions or exemptions, and must tax active trade or business income at the active trade or business income rate (5% for tax years after 2008) and a
Related Questions
- For example, if a company filed a composite return for one year, can it file a non-composite return for the next year with no explanation?
- What does the Return single composite image option in the Map To KML and Layer To KML geoprocessing tools mean for vector layers?
- What is a composite state income tax return?
