Newsroom

There’s Still Time to Reduce Your 2024 Taxes

It’s that time of year again, when we begin gathering our W-2’s, 1099s, and any other tax documents to share with an accountant or our favorite tax preparation software. For some, it means a tax refund is coming soon; for others, it means it’s time to write a check to Uncle Sam. Did you know, however, that your books may not be closed for 2024? There might still be an opportunity to lower your tax liability? Let me explain.

The Mississippi Treasury offers two 529 education savings plans, each of which may deliver you a tax deduction. The IRS treats so-called 529 plans a little differently. Rather than having to wait to see the tax advantages until next year, you can contribute today, file the contributions on your 2024 returns, and receive the tax benefits before April 15 of this year! Of course, this is not formal tax advice. Everyone’s tax situation is different, so you should consult a tax professional before making any contributions.

The next question, then, is whether a 529 plan is right for you or your family. Let me take a moment to explain what we can offer Mississippi families.

The State Treasury has two 529 programs. The first is a Mississippi Affordable College Savings (MACS) account. This is our most flexible option. Families can contribute to these plans, as they would any savings account. The contributions can grow with interest. Families can then use the funds on anything from a school laptop to private elementary school tuition to the equipment needed for an apprenticeship program.

The second option is a Mississippi Prepaid Affordable College Tuition (MPACT) plan. With MPACT, families can lock in today’s tuition rates and prepay college tuition for their child or grandchild. It’s a truly great deal, particularly if you can start the plan while a child is still in elementary school. Mississippi parents and grandparents can open these plans for a beneficiary.

Whether you have an elementary-aged child you hope will attend college one day or are looking at a career change for yourself, MACS and MPACT can deliver tax advantages to you while you save toward those goals.

In general, I don’t support the idea of taxing work, but I also don’t like the idea of taxing the steps a person must take to work. That’s one of the many reasons I’ve always fought so hard for these education savings programs over the years. If you are interested in learning more, please reach out by phone at (601) 359-5255 or online at treasury.ms.gov/collegesavings.