Parental Refundable Tax Credits for Tuition Payments:
The SCDOR will begin accepting parental tax credit applications at noon on Tuesday, October 1 for 2019 tuition payments made to qualifying schools for the 2019-2020 school year.
Parents or guardians of exceptional needs students can pay the student’s tuition at an
eligible school, then apply for a tax credit toward their South Carolina income tax bill as outlined below:
- Parents or guardians make their payment to an eligible school for their qualifying student's tuition.
- Parents complete and submit Form TC-57A to request the parental refundable credit. The tax credit application cannot exceed the amount paid out of pocket for the student's tuition. The maximum amount of refundable credit that may be requested for each qualifying student is $11,000 or the cost of tuition, whichever is less, minus the amount of scholarship the qualifying student receives from Exceptional SC. Exceptional SC scholarships are not considered an out of pocket payment and cannot be claimed for this credit. Please save documentation and credit approval letter from the SCDOR with your tax records, including the exceptional needs child's proof of eligibility.
- The SCDOR will tentatively approve the parental refundable credit requests on a first come, first-served basis according to the applicants’ representations as long as the $2 million cap has not been met.
- When you file your South Carolina income taxes, the tentatively approved parental refundable credit is claimed by completing the I-361 form.
§12-6-3790 provides that South Carolina parental refundable tax credits may not exceed $2 million for 2019.
Nonrefundable Tax Credits for Exceptional SC Donations:
Exceptional SC began accepting tax year 2019 donations on March 1, 2019. For donation information, please contact
Anyone can donate to the Exceptional SC 501(c)(3) scholarship fund, which provides scholarships to exceptional needs students. Individuals and corporations who pay South Carolina taxes can make a donation to Exceptional SC and claim a dollar for dollar tax credit against their overall South Carolina income tax liability (personal corporate income tax).
A taxpayer may not claim more than sixty percent of his total South Carolina tax liability for the year the contribution was made. If a taxpayer deducts the amount of the contribution on his federal return and claims the nonrefundable credit, then he must add back the amount of the deduction for South Carolina income tax purposes.
- Eligible to claim a dollar for dollar credit on state income tax liability;
- Not allowed to designate a specific student or school as beneficiary;
- Limited by a first come, first served annual statewide cap of $12 million.
ExceptionalSC.org/donate for more information and to make a donation. §12-6-3790 provides that South Carolina tax credits for donations to Exceptional SC may not exceed $12 million for 2019.