Pa. parents encouraged to start college savings with child tax credit

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HARRISBURG, Pa. (WTAJ) — Pennsylvania Treasurer Stacy Garrity encouraged Pennsylvanians who received money from the Child Tax Credit program to consider investing some of those funds into their child’s Pa. 529 College and Career Savings Program accounts.

“This tax credit is designed to help parents support their children, and one great way to do that is to invest in education,” Garrity said, in a press release.

According to the U.S. Department of the Treasury and Internal Revenue Service, approximately $15 billion was sent during 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, career and technical schools, trade programs, and qualified apprenticeship programs in Pennsylvania and nationwide.

Savings can also be used to pay for books, supplies, room and board, and more.

“PA 529 accounts are a tremendous way to save, and this is a perfect opportunity for families to add to their existing accounts – or to open a new account and start saving. It’s never too early to begin saving for your child’s education, and investing while they’re young can help reduce or even eliminate future debt,” Garrity continued.

Pa 529 earnings are tax-exempt and remain tax-free when withdrawals are used for qualified educational purposes.

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