I want to use this opportunity to share about recent changes in federal legislation and how they may benefit you and your family regarding tuition at Hartfield Academy. Our goal in sharing this with you is so that you can begin to consult you CPA, tax attorney, or financial planner for professional and legal advice if you feel like these changes may benefit you.
The Tax Cuts and Jobs Act has expanded the use of 529 plans to include private school tuition and tuition-related fees for K-12 schools. Formerly, these accounts only were used to help save and pay for college, not K-12 private schools, on a tax-free basis. But now, individuals can take up to $10,000 in distributions annually from their 529 plans to pay for private school tuition and tuition related fees through 12th grade, in addition to using their account for the cost of college.
If you are currently contributing to the 529 plan in Mississippi, known as The Mississippi Affordable College Savings Program or MACS, you may now withdraw up to $10,000 annually to pay for tuition and tuition-related fees to an eligible private school, including Hartfield Academy. If you do not have a 529 plan, you may want to consider researching how this might benefit your family. Contributions to a Section 529 plan grow tax-free while invested and can be withdrawn in as soon as 10 days after the funds have been contributed. In addition, Mississippi gives state income tax deductions for contributions to a Section 529 MACS plan.
For additional information about your MACS or for instructions on how to set up a MACS, please contact College Savings Mississippi at 601-359-5255. As we hear more information, from the MAIS and from the State Treasurer, we will keep you up to date. Also, take the time to read through some FAQ’s below for more information.
Head of School
I already have a MACS, when can I begin using it to pay for tuition at Hartfield Academy?
If you have an existing MACS for a child currently attending Hartfield Academy, you may contact College Savings Mississippi at 601-359-5255 and begin using your funds immediately.
I want to set up a new MACS, how soon can I use that account to pay for tuition at Hartfield Academy?
After your account is set up and your deposit has been made, you may request a withdrawal after 10 days.
Can I only use my MACS for tuition?
The Mississippi State Treasury outlines what is an allowable expense for your MACS account. Tuition and Tuition related fees (Enrollment and Book and Technology Fees) are allowable expenses. For questions about specific expenses, please contact College Savings Mississippi at 601-359-5255.
How much should I contribute to my MACS account?
We recommend you discuss any contributions to your MACS account with your CPA, tax attorney, or financial planner. Hartfield Academy is unable to advise you on contributions to your MACS account. The new federal changes allow you to receive tax benefit on contributions of $10,000 (if filing single) or $20,000 (if filling jointly) made during a calendar year. You can contribute more than this amount, however, there is no additional tax benefit to contributions made over these amounts.
How will the money in my MACS account be disbursed to Hartfield Academy?
Once your MACS account is set up online, you will be able to manage payments in their online portal. You can set up a withdraw to be mailed directly to Hartfield Academy or to your home where you can then pay Hartfield. At this time, and as recommended by the MAIS, we recommend having it sent to you personally.
Will Hartfield be able to help me set up my MACS account?
No. The MACS account is set up directly through the State Treasurer’s Office. Please contact College Savings Mississippi at 601-359-5255. Hartfield Academy does not have access to personal MACS information/accounts.
Can anyone contribute to my child’s MACS account?
The MACS program does not have a residency requirement or a relationship requirement, which means anyone can set up a MACS account for a specific beneficiary. The beneficiary must have a Social Security number and the donor will only receive the state tax benefit if they live in Mississippi.
If I have multiple children, will I have multiple MACS accounts?
Yes. Each MACS account has an assigned beneficiary, meaning that each child will need their own MACS account.
I visited the Mississippi State Treasury’s website and do not see anything about this update to the MACS plan.
The MAIS and the State Treasurer’s office has been working together to best communicate these changes. They hope to produce a webinar for parents to help make this transition as smooth as possible. However, at this time, their website is not up to date.
What kind of records should I keep?
We recommend you discuss the proper record keeping of your MACS account with your CPA, tax attorney, or financial planner. We have been told by the State Treasurer’s Office that parents should keep receipts for the IRS.