Ad Spot

McRae: Get More from Your Monthly Child Tax Credit Payments

by Treasurer David McRae | Guest Columnist

Beginning on July 15, most Mississippi parents will begin receiving a monthly child tax credit payment from the federal government. How do you get the most value from these dollars? We have one idea families may want to consider. But first, a little about the credit itself.

Depending on your income, these new payments can be as high as $300 per month for every child in your household under six years of age and $250 per month for those ages 6 to 17. Under current law, the payments are not expected to extend beyond December 2021, so this is a temporary benefit. Full benefits are available to those who made less than $75,000 as a single parent or less than $150,000 as a married couple in 2020. Given that Mississippi’s median household income is around $45,000, it’s safe to assume most families will benefit.

For some, this money is needed to pay for pure necessities, but for those who have more wiggle room in their budget, families may want to consider investing the payments in a 529 education savings plan.

Today, the average Mississippi student graduates with $30,000 worth of debt. Owing that much can impact nearly every aspect of a young person’s life, which is why about 30 percent of graduates say they’re delaying major life milestones (like getting married, buying a home, and starting a family). 

Unfortunately, the student loan problem is only getting worse, as tuition rates are rising quickly. In Mississippi, they’ve spiked more than 70 percent in the last decade! But families can act now to alleviate all or part of that burden.

For as little as $25 (just a small portion of a family’s monthly Child Tax Credit payment), you can begin investing in your child’s education. Once invested, the money has the opportunity to grow in value on a tax-advantaged basis. 

When you’re ready to use the funds, they can be applied to a wide variety of things, including tuition, books, supplies, and certain room and board expenses. If your child doesn’t end up at a traditional two- or four-year college, the money can be applied to apprenticeships and even some certification courses. Even if you don’t use it all, the account can be rolled over to another beneficiary or saved for continued education. 

Here’s the bottom line: The enhanced Child Tax Credit payments are headed to your bank account soon. To get the most out of them, make a plan now for how you’d like to use the funds. You might even consider setting up an automatic monthly deposit from your bank account to a Mississippi 529 savings account for consistent investing. 

For more information on the tax-advantaged education savings plans offered through your State Treasury, please visit Treasury.MS.gov/CollegeSavings.

Local

‘We are not raising taxes’: Vicksburg-Warren School District says local school taxes will not be raised this year

Local

Hyde-Smith Advocates Miss. Needs with Interior Secretary, including repairs to Vicksburg National Military Park

Local

Truck overturns on Clay Street I-20 ramp, ties up traffic

Business

Treasury awards $1.82 million to RiverHills Bank, 51 other MS institutions

Crime

Claiborne County Sheriff’s Office arrests three for stabbing death, including teenage girl

Local

Milton Moore not returning as Vicksburg police chief

Local

Man injured in motorcycle wreck at Riverwalk

Local

Dan Fordice to receive American Spirit Medallion

Crime

Vicksburg man breaks in house; shot by homeowner

Local

See you later, alligator: Alligator caught in Vicksburg’s Openwood Plantation subdivision

Crime

Two women arrested for shooting at Deluxe Inn Hotel

Local

USACE Vicksburg District announces new chief of OCIO/G-6

Local

Graduates awarded Frank Crump, Jr. Next Generation Scholarship

Local

Weather system presents weekend threat to Louisiana, Mississippi

Crime

Police called to Hillcrest burglary

Crime

Police investigating report of shots fired at hotel

Local

Simmons: Roads west of Interstate 55 shorted money for infrastructure

BREAKING NEWS

Truck fire closes section of Interstate 20

Crime

U-Haul car dolly stolen from Tri-State Tire

Local

Warren County Supervisors to establish roadwork database

Crime

Rolling Fork Man Charged with Arson

Local

USACE Vicksburg District holds annual Engineers Day Awards Ceremony

Crime

Two charged with murder following shooting death in Kings

Local

Fire call at Sherman Elementary School proves to be false alarm