HARRISBURG, Pa. (WTAJ) – Pennsylvania Treasurer Stacy Garrity has encouraged Pennsylvanians who have received money from the Child Tax Credit program to consider investing a portion of those funds in the program’s accounts their child’s college and work savings, Pennsylvania 529.
“This tax credit is designed to help parents provide for their children, and a great way to do that is to invest in education,” Garrity said in a press release.
According to the US Department of the Treasury and the Internal Revenue Service, about $ 15 billion was sent in the first round of the Child Tax Credit, which will reach 60 million eligible children nationwide.
PA 529 accounts can be opened with as little as $ 10, and they can be used to pay for tuition and eligible fees at four-year colleges, community colleges, vocational and technical schools, trade programs. and skilled apprenticeship programs in Pennsylvania and nationwide.
The savings can also be used to pay for books, supplies, room and board, and more.
“PA 529 accounts are a great way to save, and it’s a perfect opportunity for families to add to their existing accounts – or open a new account and start saving. It’s never too early to start saving for your child’s education, and investing while they’re young can help reduce or even eliminate future debt, ”continued Garrity.
Pa 529 income is tax exempt and remains tax free when withdrawals are used for qualifying educational purposes.
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