Your new addition can reduce your tax liability or give you a bigger refund with the Child Tax Credit and the Credit for Other Dependents. In 2021, these credits increased.
No matter when your baby was born, even if it was on December 31, you can claim your child as a dependent for the entire year.
If you pay for child or adult care, the Child and Dependent Care Credit can give you a tax credit for those costs-just be sure to keep your receipts.




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