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Reading: Child Tax Credit payments begin Thursday – Extra cash could help parents save for college
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Reading: Child Tax Credit payments begin Thursday – Extra cash could help parents save for college
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Child Tax Credit payments begin Thursday – Extra cash could help parents save for college

Andi Davis
By Andi Davis July 14, 2021
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2 Min Read
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Under the latest federal COVID relief package, the Child Tax Credit was expanded to make it so a portion of that credit would be paid before Tax Day.

Beginning Thursday, July 15th, families will receive $300 per month for a child under six and $250 per month for a child under 18. To qualify for the full credit, families must have made less than $150,000 in 2020 as a married couple or $75,000 as a single parent. The payments will be issued every month until December 2021.

State Treasurer David McRae says he hopes some families can use their federal Child Tax Credit payments to begin making progress toward their college savings goals.

McRae says in Mississippi, there are two different types of college investment savings plans – MACS and MPACT.  A MACS account is just like a savings account. You can contribute as much or as little as you’d like. You then get to earn interest on anything you invest. These plans are also very flexible. You can use them for tuition, room and board, and even books. A lot of people don’t realize you can also use them for elementary and secondary school tuition or even an apprenticeship program. MPACT on the other hand, lets you lock in today’s tuition rates and protect your family from any future hikes. You then get set up with a payment plan, so by the time your child goes to college, it’s all prepaid.

For $25, any Mississippi resident, including grandparents, aunts and uncles, and even family friends, can start a Mississippi 529 plan.

For more details, visit Treasury.MS.gov/CollegeSavings

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