HB 40 Summary

• Authorizes individual Mississippi income tax deductions for contributions to qualified tuition programs under Section 529 of the Internal Revenue Code.

• Sets maximum annual deduction limits of $20,000 for joint filers and $10,000 for single and other filers.

• Allows contributions or payments for a tax year to be made after the calendar year but before the deadline for making contributions to an individual retirement account under federal law.

• Applies the same deduction allowances to nonresident individuals, but only for the proportion of income derived from Mississippi sources.

• Takes effect January 1, 2011.