Tax Credits Available!

It’s tax season in Mississippi! Many are gathering their W-2’s, organizing the various other documents they’ve received in the mail, and filling out the IRS’s onerous paperwork. It’s a lot, but I might have one more piece of paper to add to the mix that could shave a little extra off your tax bill.

Many don’t realize that a contribution to a 529 education savings account (like those offered through Mississippi College and Career Savings) comes with some real tax advantages.

Before we get into those advantages, let me explain what 529 education savings are. In Mississippi, you have two primary options. The first is an MPACT Plan. This plan lets families lock in today’s tuition rates for a two-or four-year college education and then prepay that expense for your child or grandchild. Contributions to this plan can be used as a tax deduction, in some cases.

The second is a MACS account. MACS couldn’t be more flexible. You can use the funds you save via MACS on anything education related – apprenticeships, certification programs, classroom supplies for teachers, continued education, vocational schools, laptops, elementary and secondary private school tuition, room and board, and much, much more.

Contributions to MACS can also be used as a tax deduction, in some cases. On top of that, the growth you experience in these accounts is tax-deferred. As a result, your money has the chance to compound faster. Withdrawals from these accounts are also tax-free for qualified expenses!

What’s more, you don’t have to wait until next year to see the tax benefits of a contribution to either MACS or MPACT. Contributions made today will apply to your 2023 taxes!

Everyone’s tax situation is a little different and there can be limitations, so if you’d like to know how you could benefit, please contact a tax professional.

To learn more about any of the programs mentioned, please visit or call 601-359-5255.

No matter the size or frequency of the contributions, 529 savings plans make an impact and help relieve the financial burden of future educational endeavors. The sooner you open a 529 account, the sooner you can start investing in yourself or your loved ones (and the sooner you can start racking up those tax breaks)!