Adoption Tax Credit

South Carolina does not have a state adoption tax credit, but families may be eligible for a $2,000 income deduction on their South Carolina individual income tax return if they have adopted a child with special needs and they claim the child as a dependent on their federal tax return. Families must attach a copy of the letter they received at the time of adoption from SC DSS that certifies the adoptee as a “special needs child”. The adoption credit is claimed on Line u of your SC 1040. 

Qualified adoption expenses, according to the Internal Revenue Service, may include:

  • Reasonable and necessary adoption fees
  • Court costs and attorney fees
  • Traveling expenses (including amounts spent for meals and lodging while away from home)
  • Other expenses that are directly related to and for the principal purpose of the legal adoption of an eligible child

Do you have a complaint regarding services being provided to a child by a state agency? Please submit your complaint by phone (1-800-206-1957) or an electronic submission form here with the South Carolina Department of Children's Advocacy.