As you may know, just before Christmas break Congress passed revisions to the federal tax code. These revisions will allow Catholic K-12 school parents to set up tax-deductible savings accounts to pay for their children’s school tuition. Money a parent deposits in one of these savings accounts is tax-deductible. For example, if a parent deposits $5,000 in an account, their taxable income is reduced by $5,000. Reducing taxable income reduces the parent’s tax liability. In the $5,000 example, a taxpayer could potentially pay $300 less in taxes, though other factors come into play in preparing one’s taxes.
Attached find a MCC flier entitled “New Tax Benefit for Catholic School Parents”. This flier is one sheet and one-side only. In very brief form, it explains how parents can set up a tax-deductible Missouri 529 MOST account, thereby reducing the taxes they pay. Two links are provided in the flier so that families can determine what their tax benefit will be and then set up a 529 MOST account.