If you serve in the National Guard or the U.S. Armed Forces Reserves, the pay you get for annual training, weekend drills and other inactive duty training is generally exempt from South Carolina income tax. The source describes the exempt amounts as all inactive duty pay for weekend drill and other inactive duty training, 15 days of annual training pay, 14 days of annual training pay plus up to two days of travel time listed on your orders for members on inactive duty, and for full-time Active Guard and Reserve members 15 days of annual training pay plus up to 24 days of weekend drill pay at the daily rate, to a maximum of 39 days.
There is nothing to apply for. Leave the exempt training pay out of the income you report on your South Carolina return. If your situation is unclear, search the South Carolina Department of Revenue advisory opinions or ask a tax preparer.
Your Leave and Earnings Statements and your training orders, including any orders that show authorized travel days.
