Hello,
My questions are:
1. What do first-time parents need to know to prepare for tax time?
2. How do I go about filing taxes when filing married filing separately and still get child tax credit? I am the parent claiming the child
3. Is there a fixed amount of child tax we are to receive?
Great questions and congrats!
1) first time parents will need the child's social. In order to claim the child as a dependent, there are rules which must be met. See article for indepth disucussion.
2) some deductions are limited if married filing separate. The child tax credit is not effected. Married filing separately is the ideal tax filing status if both spouses want to keep their tax liabilities separate. But if you file separate returns, you miss out on a number of tax credits and deductions that are meant for married couples, such as the earned income tax credit and the American Opportunity Tax Credit.
3) For the 2024 tax year, the CTC remains at $2,000 per qualifying child. The refundable portion of the credit has increased to $1,700 per child, up from $1,600 last year.