Most families with children will receive $3,000 to $3,600 per child
Harrisburg, PA - Pennsylvania Treasurer Stacy Garrity is encouraging Pennsylvanians who receive money from the Child Tax Credit, under the American Rescue Plan Act, to consider investing some or all 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. 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.”
Pennsylvania State Treasurer, Stacy Garrity
According to the U.S. Department of the Treasury and Internal Revenue Service, roughly $15 billion was sent in the first round of child tax credit monthly payments, which will reach 60 million eligible children nationwide.
Eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 to 17. The payments start phasing out for married joint filers who earn $150,000 per year, head of household filers who earn $112,500, and all other filers who earn $75,000.
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 earnings are tax-exempt and remain tax-free when withdrawals are used for qualified educational expenses. Contributions are also PA state income tax deductible, and account assets do not affect state financial aid eligibility.
To learn more about how to open or contribute to a PA 529 account, visit pa529.com or call 800-440-4000.
For more information on the child tax credit, visit IRS.gov/childtaxcredit2021.