United States Congress’ Tax Cuts and Job Acts
Under a recent agreement reached between the U.S.House of Representatives and U.S. Senate, the typical family of four, earning $73,000 per year, will receive a $2,059 tax cut next year.
The Tax Cuts and Jobs Act nearly doubles the standard deduction to simplify taxes and make more of what you earn tax-free. It doubles the child tax credit to $2,000 per child and lowers tax rates across the board.
The final version of the Tax Cuts and Jobs Act will allow use of your 529 college savings for costs associated with enrollment or attendance at a public, private, or religious elementary or secondary school. No more than $10,000 during a tax year may be withdrawn for this purpose, without incurring any tax penalties. This limit applies to the beneficiary, or student, and not to the account. So, even if you have multiple accounts for your child, you will still be limited to $10,000 total in tax-free distributions made after December 31, 2017.
For more information, visit Mississippi Treasurer Lynn Fitch’s Newsroom. (hyper link to: http://www.treasurerlynnfitch.ms.gov/Information/Pages/Treasurer-Lynn-Fitch%E2%80%99s-Statement-on-Upcoming-Expansion-for-College-Savings-Federal-Tax-Cuts-and-Jobs-Act-makes-K12-tuition-.aspx.
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