The South Carolina Department of Revenue (SCDOR) reminds teachers and parents that Income Tax credits are available for certain education related expenses.
Information for teachers:
- Classroom Teachers 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 $275 in this refundable credit. Teachers can claim unreimbursed expenses made after July 1 and should use the I-360 when filing their Individual Income Tax return.
- Federal tax deductions: The IRS offers tax tips for eligible educators to deduct on their federal return up to $250 of trade or business expenses that were not reimbursed. Learn more on IRS.gov.
Other education-related credits:
- 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. Use the I-319 to claim the credit with your state Income Tax return.
- 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 by Exceptional SC, if any. Credits are awarded on a first-come, first serve basis. Parents must apply for the credit using TC-57A. If approved, the credit is claimed using the I-361.
- Educational Credit for Exceptional Needs Children's Fund: This non-refundable 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, beginning with tax year 2021, cannot exceed 75% of 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. Use the TC-57 to claim the credit with your state Income Tax return.
For more information about South Carolina tax credits, visit the SCDOR's website at dor.sc.gov/taxcredits. Forms are available at dor.sc.gov/forms.
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