Frequently Asked Questions
Frequently Asked Questions
1. How do I make a qualifying donation to a Pre-K collaborative?
Contact the Lead Partner for the collaborative to which you wish to donate. You may donate to the collaborative as a whole or to a specific provider within the collaborative. Collaboratives always welcome cash donations. However, you can also donate in-kind resources, such as goods or services. Contact the collaborative first to see if the goods or services will be accepted. Once you have made a donation, the Mississippi Department of Education (MDE) will issue you a donation certificate to allow you to claim the tax credit when you file your taxes.
2. Is there a limit to how much of a tax credit I can claim?
You can donate an unlimited amount to a collaborative or specific provider. However, any individual or organization can only receive a credit of up to $1,000,000.00 in a single year.
3. How do I claim the Pre-K tax credit?
When you file your taxes, you must fill out form 80-401, which can be found on the Department of Revenue’s website each year. The Department of Revenue will verify your eligibility through MDE. Keep your donation certificate as your documentation.
4. When do I need to make my donation in order to claim the tax credit?
Donations must be made during the calendar year for which a tax return is filed. For tax returns filed during next calendar year, the donation must be made this calendar year. The tax credit is first come, first served based on the date of donation.
5. As an individual, if I have too much money withheld from my income and I make a qualifying donation in order to claim the tax credit, how much money will I get in a refund?
A tax credit reduces the amount of taxes that a person owes. The Department of Revenue (DOR) will first calculate the amount of taxes you owe based on your income. This is called your tax liability. DOR will subtract from your tax liability any tax credits you can claim. Then, your withholdings (money that you had withheld for taxes from your paycheck each pay period), if any, will be applied to the amount of remaining tax liability after subtracting your tax credits. If you have had more taxes withheld from your paycheck than your remaining tax liability after subtracting your tax credits, you will qualify for a refund for the amount of withholdings that you overpaid.