Consider Using Advance CTC Payments to Start a College Fund

Posted by Collene Torres on August 16, 2021

If you're eligible for advance child tax credit (CTC) payments provided by the American Rescue Plan Act, you might wonder if you should spend the extra cash. Some families are incurring extra child-care costs so the parents can return to work. But others don't have any imminent child-care-related expenditures to cover.

Rather than spend the money on a trip to Disneyland or new smartphones, you might want to invest in your child's future by starting or contributing to a tax-favored Section 529 college savings plan. Here's what you should know:

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Tags: Accounting, COVID, CTC, Section 529, College Fund, American Rescue Plan Act