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INSTRUCTIONS
File the 2023 I-361 to claim your 2023 Parental Refundable Credit. You must complete a separate I-361 for each
qualifying student.
What you will need to complete the I-361
1. Grant award letters from Exceptional SC for the Spring 2023 and Fall 2023 school semesters.
2. Parental Refundable Credit pre-approval letters from the SCDOR for the 2023 tax year. The tax year is indicated
on your letter.
What you need to know
• A taxpayer is entitled to a refundable tax credit against South Carolina Individual Income Tax for the amount of
cash and the monetary value of any publicly-traded securities, not exceeding $11,000 per child, for tuition
payments to an eligible school for an exceptional needs child within their custody.
• To qualify for the the 2023 Parental Refundable Credit, you must have made tuition payments between January
1, 2023 and December 31, 2023.
• The minimum 2023 Parental Refundable Credit cap limit is $2 million and can rise as high as $5 million
depending on the amount of donations received by Exceptional SC in 2023.
• This credit is awarded on a first-come, first-served basis.
• If you were pre-approved for the Parental Refundable Credit, the SCDOR will mail you a Parental Refundable
Credit Approval Notice informing you of your tentatively approved credit amount.
• You may not claim this credit until you have received the pre-approval notice.
• If a qualifying student within the custody of a taxpayer receives a grant from Exceptional SC, then the taxpayer
may only claim a credit equal to the difference of $11,000 or the total amount you paid for tuition, whichever is
lower, and the amount of the grant.
• Any changes in the information you reported in your application process could result in changes to your
tentatively approved credit amount. Report the reduced credit amount on the I-361 and on line 22d of your
SC1040.
• An increase in credit is not available. All available funds are allocated during the original application review.
Line instructions
2023 Parental Refundable Credit Calculation
Line 1: Enter the total tuition you paid for the qualifying student for the 2023 calendar year. This includes the 2023 Spring,
Summer, and Fall semesters. If the eligible school provides only the full school year's tuition, then enter only the
tuition amount specifically for the Spring 2023 semester, and/or for the Summer 2023 session, and/or for the Fall
2023 semester. You will need to reduce the total tuition cost by any credits, discounts, and non-
Exceptional SC scholarships.
Line 2: The maximum Parental Refundable Credit a parent may claim for each qualifying student is $11,000.
Line 3: Enter the lesser of line 1 and line 2. If both lines equal $11,000, then enter $11,000.
Line 4: Enter the total grant amount that the qualifying student received from Exceptional SC for the Spring 2023
semester and/or the Fall 2023 semester.
Line 5: Subtract line 4 from line 3. This is your available 2023 Parental Refundable Credit.
Line 6: Enter your total 2023 Parental Refundable Credit that was pre-approved by the SCDOR for this qualifying student.
Credit applicants who were pre-approved for this credit were mailed SCDOR-issued pre-approval letters. Enter
the credit amount from your credit pre-approval letter or revised credit pre-approval letter.
Line 7: Enter the lesser of line 5 and line 6. This is your 2023 Parental Refundable Credit. If this amount is negative, enter
zero.
If you are claiming the credit for more than one qualifying student, add the allowable credit from each I-361. Enter the
total on line 22d of your SC1040, Individual Income Tax Return.
For more information about the Parental Refundable Credit, visit dor.sc.gov/ecenc.
If filing a paper return, attach to your Income Tax return. If filing electronically, include the information from this form when
you file your return. Keep a copy of the form with your tax records.
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