TAX CREDIT

SOUTH CAROLINA DEPARTMENT OF REVENUE
COLLEGE TUITION TAX CREDIT
To help ease the financial burden for South Carolina
college students and their families, the South Carolina
General Assembly has created an income tax credit for
tuition paid to South Carolina colleges and universities.
The following information should answer most of your
questions about the tax credit.
Who can claim the credit?
The student, parents, guardian or whomever actually
pays the tuition and claims the student as a dependent
on their tax return may claim the credit. If the parent and
student split the cost of the tuition, they also may split the
credit on the tax return. However, the combined credit
claimed by the parent and student may not exceed the
maximum amount of the credit. Parents or guardians
with more than one student in college may claim a credit
for each qualifying student.
Who qualifies for the credit?
􀀹 Students must have completed their high school
education in May 1997 or afterwards.
􀀹 Students must have graduated from a South
Carolina high school or home school program in
South Carolina. Students may also qualify if they
graduated from an out-of-state prep school as long
as the parent or guardian remained a South
Carolina resident.
􀀹 Students must qualify for in-state tuition
􀀹 Students must compete at least 30 credit hours by
the end of the tax year in which the credit is
claimed
􀀹 Students must be enrolled in an undergraduate
degree program or at a one-year undergraduate
certificate or diploma program.
􀀹 Students cannot have been convicted or pled
guilty or no contest to any felonies or alcohol or
drug crimes in any state. (This does not apply if
the criminal record has been expunged.)
􀀹 Students cannot be in default on any student
loans.
􀀹 Students may not claim the credit if they are
recipients of the LIFE Scholarship or the Palmetto
Fellowship. If the student loses the scholarship, a
tax credit may be claimed for the time remaining in
the four-year credit period if the student otherwise
qualifies.
􀀹 Students must be in good standing at the school.