topic New Parent in Deductions & credits

New Parent

herefobw — Wed, 08 Dec 2021 20:33:43 GMT

I have a child that was born at the end of June. What types of benefits will that provide for my taxes? So what reimbursements would I receive and what can I focus on to receive the most amount of money back?

Re: New Parent

VolvoGirl — Wed, 08 Dec 2021 20:36:25 GMT

You can get the Child Tax Credit and the 3rd Stimulus amount (1,400) on your tax return. And when you enter the baby on your tax return be sure to select the WHOLE YEAR for the question How long did the baby live with you if they were born anytime during the year, even in December. You get credit for the whole year.

Re: New Parent

Critter-3 — Wed, 08 Dec 2021 20:38:21 GMT

For a child born in 2021, depending on your income, you are entitled to the third stimulus payment, the Child Tax Credit and the Child Care Credit. In the program interview it is vital that you read the screen carefully so you say YES to the "did the child live with you ALL year" and that the did NOT support themselves. If you do this then the program will do all the math for you automatically.

Re: New Parent

Critter-3 — Wed, 08 Dec 2021 20:40:05 GMT

@VolvoGirl See the screenshot ... they "improved" this screen this year sort of and combined it with the next screen. Hopefully folks won't make the same old mistakes as in the past.

Re: New Parent

drc845443 — Wed, 08 Dec 2021 20:43:41 GMT

Congratulations on the new baby!

Depending on your personal circumstances, a new baby in the family could help to get various tax benefits including (but not limited to):

Possible change in filing status to head of household
Claiming the Child Tax Credit
Claiming the Child Dependent Care Credit
Claiming the Earned Income Credit

The extent of the benefits that you will get depends on your personal circumstances such as marital status, income, etc. Please read through the resource in the link below for additional information about the impact of the birth of a child on your income taxes.

https://turbotax.intuit.com/tax-tips/family/birth-of-a-child/L26LBBTkd