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.
