The South Carolina Credits section allows you to claim certain tax credits that may reduce your South Carolina tax liability. Some credits are calculated automatically, while others require additional information to determine your eligibility.
Below is a brief explanation of each credit shown in this section.
Tuition Tax Credit
South Carolina allows certain taxpayers to claim a credit for qualifying tuition expenses paid to attend an eligible college, university, or other approved institution.
Select Begin to determine whether you qualify and to enter any required information.
For more details on this credit, please see this article.
Credit for Taxes Paid to Another State
If you're a South Carolina resident and paid income tax to another state on income that is also taxed by South Carolina, you may qualify for this credit.
This credit helps prevent the same income from being taxed twice.
Common situations include:
- Living in South Carolina and working in another state
- Receiving income from another state's business activities
- Receiving pass-through income from a partnership or S corporation that paid tax to another state
For more details on this credit, please see this article.
Two Wage Earner Credit
Married taxpayers filing a joint return may qualify for the Two Wage Earner Credit when both spouses have earned income.
The credit is generally calculated automatically based on information entered in your return.
Classroom Teacher Expenses Credit
Eligible educators may qualify for a credit for certain unreimbursed classroom expenses paid during the tax year.
Qualifying expenses may include classroom supplies, instructional materials, and other eligible items purchased for use in the classroom.
Parental Refundable Credit (Form I-361)
The Parental Refundable Credit provides a credit for taxpayers who meet the eligibility requirements established by South Carolina law.
Because this is a refundable credit, qualifying taxpayers may receive the benefit even if they do not owe South Carolina income tax.
Complete the Form I-361 interview to determine your eligibility.
Tax Credits (Schedule SC1040TC)
Schedule SC1040TC is used to claim certain South Carolina tax credits that are not reported elsewhere on the return.
These credits may include credits passed through from partnerships, S corporations, estates, or trusts, as well as other credits authorized by South Carolina law.
If you received documentation showing you qualify for a South Carolina tax credit, select Begin and enter the requested information.
Do I Need to Complete Every Credit Section?
No. Only complete the credit sections that apply to your situation.
Some credits are calculated automatically based on information already entered in your federal and South Carolina returns, while others require additional information before the credit can be calculated.
Review each credit carefully to ensure you receive any South Carolina tax benefits for which you qualify.