South Carolina Capital Gains - Nonresident calculation

[jasdlm]

Client sold land (at a substantial loss) and a vacation house (at a substantial gain) in SC in 2020 (not SC residents).  That 40% capital gain deduction is pretty slick.  

SC Sch NR is also allowing a deduction of $10,000 per client 'retirement deduction' even though they are not SC residents.  The two combined (40% deduction and $20k retirement deduction) result in no SC tax even though clients had a $30k capital gain in the state.SC peeps, am I reading this correctly?  The instructions say 'SC taxes retirement income for individuals who are residents of the state'.  I have no income listed on the NR for retirement, but the software (ATX) is calculating the deduction by pulling the numbers from the Federal return and then allowing the deduction (on the Schedule NR) even though there is no retirement income on the NR.  I'm assuming I should just override the software and remove the $20k deduction?

Thanks much!

[joanmcq]

There is probably a box you need to check somewhere.  Look at the retirement income and make sure there isn't a 'tax this/don't tax this income' setup.