PITTSBURGH (KDKA) – Starting this month, eligible parents in the United States will receive up to $ 300 for each child in monthly payments through the American Rescue Plan.
According to the IRS, more than $ 15 billion in child tax credits were distributed nationwide in that first wave.
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Here in Pennsylvania, the Pennsylvania Department of the Treasury is encouraging recipients who are financially able to invest some or all of these funds in the PA 529 College and Career Savings Program.
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The program offers two types of accounts: an investment plan, where returns are based on the financial market, or a savings plan, which reflects rising tuition costs.
“The proceeds will be tax-free when the withdrawals are used for qualifying education expenses,” said Samantha Galvez, press secretary for the Pennsylvania Department of the Treasury. “Contributions are also deductible from state income tax, and account assistance does not affect eligibility for government financial assistance.”
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Funds can be withdrawn from your account at any time for most study expenses, including tuition and books. However, you could be punished for spending this money on non-educational purposes.