SC Individual taxes - tuition tax credit

[LoriWing]

I'm being audited by SC and they are denying my tuition tax credit for my daughter.

She meets the criteria, anyone have any knowledge about "Within 12 months before enrolling, have graduated from a South Carolina high school or home school program, or a prep school outside of South Carolina while being a dependent of a legal resident of South Carolina"?

[JotikaT2]

It depends on your circumstances.

Please see the attached for the requirements to claim the Tuition Tax Credit in South Carolina.  

South Carolina Tuition Tax Credit

[LoriWing]

Yes that's the form I used that Turbotax provided.  I became a SC resident in 2015 and my dependent daughter moved in with me to attend a SC University so I feel we met the criteria.... but they disagree because she didn't go to boarding school.

[DawnC]

There is no reference to boarding school for the credit.  Your dependent can qualify if she graduated from a South Carolina high school or home school program OR a preparatory high school outside of SC as long as you were a resident of SC at the time).    So, if she graduated outside of SC, the state would have to consider her school to be preparatory school for you to qualify for the credit.  

[LoriWing]

Yes she attended a county high school in NJ that was college prep and earned 9 college credits for her core English classes that transferred over to the SC University. Also, we were given in-state tuition rates.  Wondering if I should appeal?

[JotikaT2]

If you have met all the requirements, and you can demonstrate you were eligible to take the Tuition Credit within South Carolina, I would definitely recommend filing an appeal. 

I have attached a link to the forms to get the process going for you.

South Carolina Appeals procedure

[LoriWing]

I filed the appeal and SCDOR denied it saying my daughter had to go away to boarding school. Graduating from a concurrent school in NJ does not qualify but it clearly states "if the student received a high school diploma from a preparatory high school outside SC while being a dependent of a parent who is a legal SC resident". My daughter earned 9 college credits and a high school diploma while living with my fiance in NJ. Wondering if I should take it to the next level General Counsel?

[JotikaT2]

It is totally up to you.  It appears you have met all of the requirements.  Did your letter give you a way to protest at a higher level?  

If so, you absolutely can.  

If it's something that will cause you to pay out of your pocket, you will need to weigh out the cost-benefit of the protest.