Parental (Refundable) Tax Credits for Tuition Payments:
Requests for this tax credit exceeded the $2,000,000 cap on July 5, 2017. TC-57As are being reviewed and finalized as schools continue to be approved by the EOC. Tentative approval is awarded on a first come, first served basis. Individuals approved for this tax credit will receive a notice from the SCDOR.
As of July 5, 2017:
Parental (Refundable) Tax Credits Requested: $2,000,000.00
Available Parental Credits: Approximately $0
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. Tuition payments that are eligible for the Parental Refundable Credit are payments that were made between July 1, 2017 and June 30, 2018. 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 confirm the "reservation" of the parental refundable credit, as long as the $2 million refundable credit 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.
Proviso 109.11 provides that South Carolina Parental (Refundable) Tuition tax credits may not exceed $2 million for Fiscal Year 2018.
Nonrefundable Tax Credits for Exceptional SC Donations:
As of December 15, 2017 at 8:00 am:
Donations to Exceptional SC: $7,591,735.81
Available Tax Credits for Donors: Approximately $3,408,264.19
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). Donors can deduct contributions made to Exceptional SC on their federal income taxes under IRC Section 170.
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 $11 million.
ExceptionalSC.org/donate for more information and to make a donation. Proviso 109.11 provides that South Carolina tax credits for donations to Exceptional SC may not exceed $11 million for Fiscal Year 2018.