Tax Benefits for Higher Education

The National Association of Student Financial Aid Administrators (NASFAA) publishes the Parent and Student Guide to Federal Tax Benefits for Tuition and Fees to provide students, parents, counselors, and others with general guidance to federal education-related tax benefits. The Guide includes basic information about the Hope Scholarship tax credit, the Lifetime Learning tax credit, and the Tuition and Fees Tax Deduction. Furthermore, student loan interest may also be tax deductible. For more information about federal tax benefits available for higher education check out the Parent and Student Guide to Federal Tax Benefits for Tuition and Fees or download IRS Publication 970.

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. You must file a Form SC1040 to claim the credit. The short form, Form SC1040A, cannot be used to claim the credit. When preparing your South Carolina income tax return, you will need to complete Form I-319, which will be included with all state individual income tax booklets. Visit the South Carolina Tuition Tax Credit website for more information.