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. In addition, you should learn about federal tax benefits for education http://www.studentaid.ed.gov/types/tax-benefits, including the American Opportunity Tax Credit (AOTC).
You may also want to download IRS Publication 970. This publication explains tax benefits that may be available to you if you are saving for or paying education costs for yourself, or in many cases, another student who is a member of your immediate family. Most benefits apply only to higher education.
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.