The Tax Office of
Michael Hogberg

South Carolina: Review Tax Credits Related to Education

by | Aug 15, 2022 | State Tax

August 15, 2022

So far this year, 17,831 state Individual Income Tax returns have been filed claiming $4.3 million in Teacher Classroom Expenses credits for the 2021 tax year.

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 begins.

Some South Carolina tax c​redits 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:

  • 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 $300 in this refundable credit on their tax year 2022 returns, which are the returns due in 2023. Teachers can claim unreimbursed expenses made after July 1.
    • Check out this information from the IRS about the federal educator expense deduction, which also will increase to $300 for tax returns filed next year.
  • Tu​ition 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, if any. Credits are awarded on a first-come, first-serve basis.
  • 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 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.