New Baby

[James Johansen]

Had a baby in 2023, what tax changes could I expect?

[Deepp]

Congratulations. 

Here is a great article that summarizes everything that you will need to know about having a new-born and tax implication:

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

[Sean Enrolled Agent]

Hello James Johansen,

Welcome to the new baby club!

The main tax change that you can expect is to have a child that you are able to claim on your tax return. If you were single and are able to claim the child, the baby will now allow you to file as head of household, which would increase your standard deduction amount.

Either head of household or married, if you are able to claim the dependent on your tax return, you will be able to claim the child tax credit (CTC).
Sometimes people think that they can't claim the child because the child didn't live with them the entire year. For a new baby, it doesn't matter which month the baby was born in. The baby is considered to have been with you the entire year.

The Child Tax Credit is a tax credit you can claim for each qualifying dependent child on your return. You can get up to $2,000 for each child under age 17 if your modified adjusted gross income (AGI) is less than:

• $400,000 if you're Married Filing Jointly or a Qualifying Surviving Spouse, or
• $200,000 for all other filing statuses

For more information about what the child tax credit actually is, feel free to review the following TurboTax website: What is the Child Tax Credit? 
 
Thanks,
Sean