July 27, 2021

How Child Tax Credit Funds Can Support Your Child’s Future

Pennsylvania Treasurer Stacy Garrity is encouraging Pennsylvanians who receive money from the Child Tax Credit to consider investing some or all of those funds into their children’s PA 529 College and Career Savings Program accounts.

Invest in Your Child’s Future

Roughly $15 billion was sent in the first round of child tax credit monthly payments, which will reach 60 million eligible children nationwide. If your family received funds, consider investing some (or all) of those funds into your child’s PA 529 College and Career Savings account to support their future!

What are PA 529 accounts used for?

PA 529 accounts can be opened with as little as $10 and used to pay for tuition and eligible fees at:

    • four-year colleges,
    • community colleges,
    • career and technical schools,
    • trade programs, and
    • qualified apprenticeship programs.

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

How will this impact my taxes?

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.

How much do families receive in Child Tax Credits?

Eligible families receive payments 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.

Contribute to a PA 529 Account

To learn how to open or contribute to a PA 529 account, visit or call 800.440.4000.

More Information

To learn more about the Child Tax Credit, visit the IRS website. For more news, visit our News page.

A young child plays with bubbles at a local park.