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Act Now: Reduce Your 2025 Taxes

Nobody really likes tax season. Sure, it can be nice if you get a refund, but even getting to that point can be frustrating – collecting the W-2’s and 1099s from employers, tracking down paperwork from your bank, finding your passwords for your tax prep software. It isn’t easy. That said, many are hopeful that all the work will pay off a little more this year than it did in year’s past.

Under President Trump’s leadership, Republicans passed new tax cuts for working families – and the results are starting to pour in. According to the IRS, tax refunds are up 11 percent this year, reaching $2,290. They contribute this to the new deductions and bigger cuts that were enacted. Let me give you a few examples.

First, if you’re over the age of 65, there’s a new $6,000 bonus deduction ($12,000 for couples). This largely means that Social Security income is protected from taxation.

For workers, there are no longer taxes on tips or overtime.

If you’re a parent, know that you can now enroll your child in the new Trump Savings Accounts. For newborns, $1,000 will be added to the accounts automatically – no contribution from you is required. To enroll, remember to complete Form 4547 when you file your taxes.

Here in Mississippi, the State Treasury also offers two College & Career Savings programs that can help families plan for the future while receiving tax benefits today. Contributions made now may still qualify for a deduction on your 2025 state taxes. Of course, everyone’s tax situation is different, so I always encourage Mississippians to consult a tax professional before making financial decisions. Because of Trump’s new tax bill, these accounts can be used for more things too – from earning an advanced degree to getting a new certification. Learn more by visiting treasury.ms.gov/collegesavings or calling (601) 359-5255.

The State Treasurer in Mississippi doesn’t process your tax returns, but I still see it as my responsibility to help find you savings where I can. I hope you can take advantage of a few – even if finding all the right paperwork is frustrating. Afterall, this is your money. Let’s help you keep more of it.