Updated October 4, 2026. Quick answer: Yes, for Future Scholar accounts. The statute makes contributions “deductible from South Carolina income subject to tax up to the limit”, and the State Treasurer warns that “contributing to another state plan disqualifies you from the income deduction”.
What South Carolina allows for 529 contributions
| Item | What the documents say |
|---|---|
| Treatment | Deduction from South Carolina income |
| Limit | Up to the plan’s contribution limit; the documents read print no separate dollar cap |
| Plans that qualify | South Carolina’s College Investment Program (Future Scholar) only |
| Timing | The deduction can be taken up to April 15 of the following year or the return due date |
| Not-qualified withdrawals | Previously deducted principal is recaptured into South Carolina income; earnings are taxable |
| Source | South Carolina Code 59-2-80; Department of Revenue Information Letter 20-14; State Treasurer |
A $10,000 contribution by a married couple
A married couple who put $10,000 into a Future Scholar account for one child can deduct the whole $10,000 so long as it is within the plan’s contribution limit, because the documents read set no separate dollar cap.
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Recapture
The statute says non-qualified principal “must be recaptured into South Carolina income subject to tax” to the extent it was deducted.
What the documents do not say
- Whether excess contributions carry forward to a later year.
- The plan’s dollar maximum; the documents read do not print it.
- The Department of Revenue letter and the Treasurer page are from 2020; the Code text is undated.
What changes in 2026
No change for tax year 2026 appears in the documents read for this page.
Federal rules
A state break sits beside the federal rules for 529 plans: the statute is 26 U.S.C. 529 and the IRS explains it in Publication 970, Tax Benefits for Education.
Common mistakes
- Contributing to another state’s plan and expecting the South Carolina deduction; the Treasurer says it disqualifies it.
Related: how South Carolina taxes retirement income, whether South Carolina taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.
Sources
- South Carolina Code Title 59 Chapter 2, SC College Investment Program (Section 59-2-80): https://www.scstatehouse.gov/code/t59c002.php
- SC Information Letter 20-14, 529 plan: https://dor.sc.gov/resources-site/lawandpolicy/Advisory%20Opinions/IL20-14.pdf
- South Carolina is 1 of 6 States to Offer This Friendly Tax Perk on 529 Plans: https://treasurer.sc.gov/about-us/newsroom/529-plan-tax-perks-in-south-carolina/
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.