SC SCH TC 57: Educational Credit for Exceptional Needs Children’s Fund (Revision 2021-05)
South Carolina · South Carolina DOR · Used for tax years 2024, 2025, 2026
South Carolina Schedule TC-57 calculates the nonrefundable educational credit for qualifying donations to the Exceptional Needs Children's Fund, also called the Exceptional SC Scholarship Fund. It reports the SCDOR-approved amount, the allowable credit based on your tax liability
Who files this form
This form is for taxpayers claiming the nonrefundable educational credit for qualifying donations to the Educational Credit for Exceptional Needs Children's Fund, also called the Exceptional SC Scholarship Fund.
SCDOR sends you a letter stating your approved credit amount based on donations reported by Exceptional SC.
What you'll need
- Your SCDOR letter showing the approved credit amount. Attach a copy to the Income Tax return claiming the credit.
- Your current-year tax liability to calculate the credit limit.
- Your name and SSN or FEIN. Individual taxpayers must provide their Social Security Number.
- SC1040TC or SC1120TC, where you enter the allowable credit.
How to file
Complete SC SCH.TC-57 as follows:
- Enter the amount approved by SCDOR on line 1.
- Enter your current-year tax liability on line 2.
- Multiply line 2 by 75% and enter the result on line 3.
- Enter the smaller of line 1 or line 3 on line 4. Also enter this allowable credit on SC1040TC or SC1120TC.
- Subtract line 4 from line 1 to find the credit carryforward on line 5.
If you file on paper, attach this form to your Income Tax return. If you file electronically, keep a copy with your tax records. Attach a copy of your SCDOR approval letter to the return claiming the credit.
Common mistakes
- Forgetting the South Carolina income adjustment: if you deduct the donation on your federal return, you must add that amount back to your South Carolina taxable income.
- Leaving out the SCDOR approval letter: attach a copy to the return claiming the credit.
- Not following the form-retention directions: attach this form if filing on paper, or keep a copy with your tax records if filing electronically.
- Claiming more than the allowed credit: line 4 must be the smaller of your approved amount or 75% of your current-year tax liability.
- Carrying unused credit forward too long: unused credit can be carried forward for up to three years.
Questions people ask
Which donations qualify for this credit?
The credit is available for qualifying donations to the Educational Credit for Exceptional Needs Children's Fund, also called the Exceptional SC Scholarship Fund.
How do I know my approved credit amount?
SCDOR sends you a letter stating the amount approved based on donations reported by Exceptional SC.
How much credit can I claim this year?
The allowable credit is the smaller of your SCDOR-approved amount or 75% of your current-year tax liability. The credit is nonrefundable.
Can I carry forward unused credit?
Yes. Unused credit can be carried forward for up to three years.
What if I deduct the donation on my federal return?
You must add the deducted donation amount back to your South Carolina taxable income.