I forgot one more comment. Depending on your living situation, someone else might be able to claim your child as a dependent and get a larger benefit than you. For example, if you live with your parents (the child's grandparents) they can claim the child as a dependent as long as you let them (the parent always gets first choice) AND as long as their taxable income is more than yours.
Other adults you might live with might or might not be able to claim the child as a dependent with your agreement. It can get quite complicated so provide more details if you want detailed answers.
It can get complicated to figure out how to maximize the tax benefit of a small child. Making several tax returns would be one way of testing it as long as you are careful to only file one return that represents your final choice.
