Adoption of Special Needs Child in SC - Deduction?

[TaxesAreFun89]

We adopted a special needs infant last year in SC. We received a letter from DSS letting us know that on top of the Adoption Credit (Federal) we also qualify for the SC deduction for special needs adoption. I filled out the Adoption Credit in Federal but can't find anywhere to enter the information for the $2,000 in State.

Help please! 🙂

[Anita01 · Accepted solution]

From the SC Department of Revenue web site:https://dor.sc.gov/forms-site/Forms/SC1040Inst_2016.pdf p.6"

"If you have adopted a "special needs child", you may subtract $2,000 per year per child as long as the adopted child qualifies as a dependent on your federal return. Attach a copy of the letter you received at the time of adoption from the SC Department of Social Services which certified the person as a "special needs child." A "special needs child" means a person under the age of 18 at the time of adoption, who is a dependent of a public or private non-profit adoption agency, is legally free for adoption and has been determined by the agency to have specific conditions. 

In the program, as you go through the SC screens, you will come to one that is titled

Here's the income that SC Handles Differently.

You will have to scroll all the way to the last choice on that screen for Other Deductions. Select that and then enter the reason and amount on the next screen.  The reason can be as simple as Special Needs adoption.  Enter the number as a positive number, no minus sign.

As you can read above, you'll need to file your state return by mail so you can attach the letter as described.

[Chris3k2]

is it still a requirement to file the SC state return by mail in 2017 tax year?

[wls090]

I have the same question.... I heard you just need to make sure you keep a copy of the paper you received from DSS but I would love confirmation on this!!

[Tonoa]

Can anyone please tell me how to access the state return so I can manually enter the special needs deduction?  I can manually view my federal 1040,  but I can't figure out how to get to the state 1040.

[mijesus1996]

Above it mentions you may subtract $2,000 per year per child.  What does it mean per year?  Do you just do this $2000 deduction one year or more?  If so, how many?  It seems like you have to manually enter into Turbotax still for the state but I don't think it requires you to mail in paperwork any longer.

[packpike]

How about for 2020? I can't find the 'other' box to be able to enter in the $2K credit.

[Critter-3]

NONE of the state programs are operational yet ...  Looks like 1/14 at the earliest for SC...

           IRS Forms Availability Table for TurboTax Individual (Personal) Tax Products

·         State Forms Availability Table for TurboTax Individual (Personal) Tax Products

[packpike]

SC opened up recently as I've been using it already. I take your comment to mean that it's not complete yet so I'll wait and try again next month. Thanks.

[Critter-3]

Beta versions of the programs are operational however they are far from fully functional ... check the charts in the link provided. 

[packpike]

The 1040 and other forms for SC are available now and I still don't see the 'other' option under credits.

[packpike]

Found it. On the Income page look under Misc and 'Other Subtractions'.