FROM TUITION TO CLASSROOM EXPENSES: LEARN MORE ABOUT STATE EDUCATION TAX CREDITS

What you need to know:

Classroom teachers in public or private schools who are not reimbursed by their counties for teaching supplies and materials can claim up to $350 in this refundable credit on their tax year 2023 returns.
Qualifying students attending a two-year or four-year college or university are eligible for the refundable Tuition Tax Credit that can pay up to $1,500.
Parents of qualifying exceptional needs children who pay tuition to an eligible school may be eligible for the Parental Refundable Credit, which pays the cost of tuition or $11,000, whichever is lower.

So far this year, 18,403 state Individual Income Tax returns claiming Classroom Teacher Expenses Credits have been filed for the 2022 tax year, for a total of $4,760,560.

That's just one of several education-related state tax credits the South Carolina Department of Revenue (SCDOR) wants parents and teachers to consider as another school year draws near.

Some South Carolina tax credits related to education are nonrefundable, meaning they cannot reduce your tax liability below zero, while other credits are refundable. Each of the credits apply to specific circumstances. Review the facts in your situation to see if any of the credits detailed below apply. You may be able to claim these credits on your tax year 2023 returns, which are due in 2024:

Classroom Teacher Expenses Credit: Classroom teachers in public or private schools who are not reimbursed by their counties for teaching supplies and materials can claim up to $350 in this refundable credit. Teachers can claim unreimbursed expenses made after July 1.

Check out this information from the IRS about the federal educator expense deduction, which allows a deduction of up to $300 for eligible educators' expenses.

Tuition Tax Credit: This refundable credit of up to $1,500 is for 50% of the tuition paid for qualifying students attending a two-year or four-year South Carolina college or university.
Parental Refundable Credit: Open to parents of qualifying exceptional needs children who pay tuition to an eligible school, this refundable credit reimburses parents for the cost of tuition or $11,000, whichever is lower, per qualifying child. The credit can be reduced by the amount of any grant from Exceptional SC. Credits are awarded on a first-come, first-serve basis.
Educational Credit for Exceptional Needs Children's Fund: This nonrefundable credit is open to taxpayers who make a qualifying donation to the Exceptional Needs Children's Fund (Exceptional SC). The amount of the credit must be approved by the SCDOR and cannot exceed 75% of your tax liability. If a taxpayer deducts their contribution at the federal level and claims the credit, then the deduction is added back for purposes of South Carolina Income Taxes.

More information:
For more information about South Carolina tax credits, including how to claim the credits, visit the SCDOR's website at dor.sc.gov/taxcredits.

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