Newborn information

[Anielsen2]

Hello, We have a new baby, 1st one. We are not married and live in CA. What would count as tax deductions, just medical bills, or day to day items needed? 
if we look for a nanny in future what do we do for taxes?

If my fiancé is claiming head of household here, should he be claiming himself and our son on his taxes now? So it would be 2?

Any more useful information would be great help.

[xmasbaby0]

If you are all living together as a family, the child can be entered on only ONE tax return.   If the bio-dad is claiming the child, then that is the only tax return on which information about that child can be entered.  The other parent can file Single, and will not enter anything at all about the child on their tax return.

The parent who is claiming the child can file as Head of Household, and may be able to get the other child-related credits such as the childcare credit, child tax credit and earned income credit.   And of course, you can claim medical expenses PAID in 2022 for the child if you itemize deductions.

You cannot claim anything for the "day to day" expenses/items for your child.   Those expenses are not deductible.

If you hire a nanny in the future, the nanny may be a household employee if the nanny works in your home and earns $2300 or more in the year.  You will need to issue a W-2 and withhold Social Security, Medicare and federal tax from the nanny's pay.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-payments/pay-taxes-pay-household-emp...

[RSUMan]

Medical expenses do generate a tax deduction if:

1. you itemize deductions and

2. the medical expenses must exceed 7.5% of your Adjusted Gross Income.

If you hire a nanny, you will need to deal with the payroll taxes associated with the nanny's pay.

The Dependent Care Credit may be available if you hire a nanny.

In order to file as Head of Household, you have to have a dependent on the tax return; so yes, fiancé should put son on the tax return. 

[Anielsen2]

Thank you. So would he also do the Child tax credit and then this  Child and Dependent Care Credit?

what qualifies for the dependent care credit? 

[xmasbaby0]

The child and dependent care credit is a credit you can get if you paid someone to take care of your child while you worked.

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit

The child tax credit is a credit that can lower the tax you owe, and there is a refundable portion you might receive as part of your income tax refund.  The full amount of the CTC for 2022 is $2000.  Up to $1400 can be a refundable credit.    The CTC is available for children UNDER the age of 17.

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

[xmasbaby0]

And...since you asked about medical expenses:

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2021—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

[SuziM]

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