Mississippi Residents Can Receive Up To $20,000 From The Tax Shelter Annuit
Posted by admin on July 25, 2008 in Business
The annual tax shelter annuity benefit is available for parents and grandparents who are taxpayers in Mississippi and who make contributions to the section 529 plan on behalf of their child or grandchild. Mississippi taxpayers receive a $10,000 deduction if they file as single or head of household; married joint filers can receive $20,000. You must be a Mississippi resident to receive the deduction. The federal amount is $12,000 (or $24,000 for married joint filers) per year, per child. Simply stated, you can contribute up to $12,000 without incurring a federal gift tax. Any amount exceeding the 529 gift tax exclusion limit is considered a taxable gift and must be reported on your federal gift tax return.
