COLUMBIA, S.C. (WCBD) – As teachers and parents gear for another school year, South Carolina officials want them to be aware of certain education-related tax credits the state offers.
A tax credit is an amount of money that can be used by taxpayers to offset the total amount owed to the state government.
In South Carolina, tax credits are split into two categories: nonrefundable and refundable.
Nonrefundable credits cannot reduce your tax liability–amount owed– below zero, but refundable credits can.
Unused nonrefundable credits may carry over to claims in future years, while refundable credits are returned to the taxpayer.
The following are 4 education-based tax credits available to South Carolina taxpayers:
- Classroom Teachers Expenses Credit
Public or private school teachers who are not reimbursed by their counties for teaching supplies and materials can claim up to $300 in this refundable credit. Classroom teachers must file for this credit on their tax year 2022 returns which are due in 2023 and can claim unreimbursed expenses made after July 1.
According to the South Carolina Department of Revenue, more than 17,000 state Individual Income Tax returns have been filed claiming roughly $4.3 million in Teacher Classroom Expenses credits for the 2021 tax year.
- Tuition Tax Credit
A refundable credit of up to $1,500 for 50% of the tuition paid for qualifying students attending a two-year or four-year South Carolina college or university.
- Parental Refundable Credit
This first-come, first-serve credit is open to parents of qualifying exceptional needs children who attend an eligible school. The refundable credit reimburses parents for the cost of tuition or $11,000, whichever is lower per each qualifying child.
- Educational Credit for Exceptional Needs Children’s Fund
South Carolina taxpayers who make a qualifying donation to Exceptional SC are eligible for this nonrefundable credit. The credit amount must be approved by SCDOR and cannot exceed 75% of tax liability.
More information on each credit and instructions on how to claim can be found on SCDOR’s website.