I-361: Parental Refundable Credit (2025)
South Carolina · South Carolina DOR · Used for tax years 2025
South Carolina Form I-361 calculates the 2025 Parental Refundable Credit for a qualifying student. It reports tuition paid, Exceptional SC grants, and the credit amount pre-approved by the SCDOR to determine the credit claimed on your SC1040.
Who files this form
File the 2025 I-361 if you are claiming the 2025 South Carolina Parental Refundable Credit. Complete a separate form for each qualifying student.
The credit is for tuition payments to an eligible school for an exceptional needs child in your custody. To qualify for the 2025 credit, you must have made tuition payments between January 1, 2025 and December 31, 2025.
You can claim the credit only after receiving a 2025 Parental Refundable Credit Approval Notice from the SCDOR for the qualifying student.
What you'll need
Have these documents and details ready:
- Exceptional SC grant award letters for the Spring 2025 and Fall 2025 semesters.
- Your SCDOR Parental Refundable Credit pre-approval notice or revised notice for tax year 2025. The tax year appears on the notice.
- The tuition amounts you paid for the qualifying student's Spring, Summer, and Fall 2025 terms, including any credits, discounts, and non-Exceptional SC scholarships that reduce tuition costs.
- Your name and Social Security number, the qualifying student's name and Social Security number, and your spouse's name and Social Security number if married filing jointly.
How to file
Complete one I-361 for each qualifying student:
- Enter the tuition you paid for the student's 2025 terms on line 1, reduced by credits, discounts, and non-Exceptional SC scholarships.
- On line 3, enter the smaller of line 1 and the $11,000 maximum on line 2.
- Enter the student's total Exceptional SC grants for 2025 on line 4. Subtract line 4 from line 3 and enter the result on line 5.
- On line 6, enter the student's 2025 pre-approved credit amount from your SCDOR approval notice or revised notice.
- On line 7, enter the smaller of line 5 and line 6. If negative, enter zero.
Enter the credit on line 22d of your SC1040. If claiming the credit for more than one student, add the allowable credits from all your I-361 forms and enter that total.
Paper filing: Attach the I-361 to your SC1040, Individual Income Tax Return.
Electronic filing: The I-361 should be part of your filing software's workflow. If it is not supported, log in to MyDORWAY, select the More tab, then Send the SCDOR a Message. Send a web message with your I-361 attached.
Common mistakes
- Claiming the credit before approval: You must receive the SCDOR pre-approval notice before claiming the credit.
- Using one form for multiple students: Complete a separate I-361 for each qualifying student.
- Including tuition outside the 2025 terms: If the school provides a full school year's tuition amount, use only the portions specifically for Spring, Summer, and Fall 2025.
- Not reducing tuition costs: Reduce tuition by credits, discounts, and non-Exceptional SC scholarships. Account for Exceptional SC grants separately on line 4.
- Treating the approved amount as guaranteed: Changes to your application information or an audit could change the allowable credit. Report any reduced credit on the I-361 and SC1040 line 22d. An increase in credit is not available.
- Entering a negative final credit: If the amount for line 7 is negative, enter zero.
Questions people ask
What is the maximum credit for each student in 2025?
The maximum is $11,000 per qualifying student. Your actual credit may be lower based on tuition paid, Exceptional SC grants, and the amount pre-approved by the SCDOR.
How does an Exceptional SC grant affect my credit?
Subtract the student's Exceptional SC grants from the smaller of your tuition amount and $11,000. Your final credit is the smaller of that result and your pre-approved amount, but not less than zero.
Can I claim the credit for more than one student?
Yes. Complete a separate I-361 for each qualifying student, add the allowable credits, and enter the total on SC1040 line 22d.
Is the credit refundable, and how is it awarded?
It is a refundable credit against South Carolina Individual Income Tax. It is awarded on a first-come, first-served basis, and you must receive a pre-approval notice before claiming it.