Parental Refundable Tax Credits for Tuition Payments:
The SCDOR will begin accepting the 2021 TC-57A, Application for Parental Refundable Credit, on February 1, 2022, at 8:30 am. Approved applicants will receive a letter, and those next in line will be placed on a waiting list.
Learn more about the application process >
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 the TC-57A online using
MyDORWAY, our free and secure tax processing system. 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 each tax year.*
Nonrefundable Tax Credits for Exceptional SC Donations:
Exceptional SC is now accepting tax year 2022 donations. For donation totals and more information, visit Exceptional SC’s website. The SCDOR approves credits of qualified donations to Exceptional SC on a first come, first served annual statewide cap of $12 million*.
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 75% 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.*
- Donors can carry forward credit up to three years beginning with tax year 2021.
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 each tax year.* However, Exceptional SC may carry forward up to $5 million of donations into the next year to provide credits in the next year. This carryforward amount does not increase the cumulative tax credit amount for any one year.