New Tax Benefit for Catholic School Parents

//New Tax Benefit for Catholic School Parents

New Tax Benefit for Catholic School Parents

Catholic school parents may benefit from the recent changes to the federal tax code. The recently passed federal tax law allows parents to make contributions to a child’s Missouri 529 MOST account for K-12 tuition, in addition to expenses for higher education that are already permitted. The Missouri 529 MOST account is an investment program sponsored by the Missouri State Treasurer’s office. Anyone can open a MOST account, including parents, grandparents, or friends of K-12 or college-aged students. In this way, if parents lack financial resources, others can contribute to the family’s MOST account. Interest earnings on contributions made by parents to MOST accounts are not subject to state or federal taxes. Furthermore, qualified distributions from the account (those for higher education expenses, and now K-12 tuition) are also not taxed. Parents can withdraw up to $10,000 annually for private K-12 tuition per student as an eligible distribution from a MOST account. Parents can elect to make contributions to the MOST account according to their own timetable, such as monthly. Parents may want to consult with their local bank or financial advisor regarding the advisability of setting up a 529 MOST account. To calculate a Missouri school family’s tax benefit, visit: https://vanguard.wealthmsi.com/stdc.php To set up a Missouri 529 MOST account, visit the Missouri MOST website: https://www.missourimost.org/home/open-a-most-529-account.html.

2018-12-12T16:49:22+00:00