Question

Maximizing return with a new child

Forum|Forum|1 year ago
July 31, 2024
1 reply
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I had a baby this year (first child). What are the child related costs that I can file for? Is there anything I should do or look out for to maximize my return? Costs related to childcare, personal nanny, daycare, baby items, Roth IRA, education savings, etc.?

Ask the Experts - Dependents - July 2024

S

SwapnaM

Congratulations on the new baby!!

First & foremost apply for Social Security number as you will need one to claim the child as dependent.

Yes, you will be eligible for Child tax credit of up to $2000, EITC (depending on income), Child & dependent care credit for daycare & nanny expenses. You can start saving up for college by contributing to 529 plans & also start a Kid IRA as soon as your child starts earning income.

The links below have valuable information about the various tax breaks that the birth of a child can bring. https://turbotax.intuit.com/tax-tips/family/birth-of-a-child/L26LBBTkd

https://turbotax.intuit.com/tax-tips/family/tax-exemptions-and-deductions-for-families/L0Nx5Tnxi

@CMac9 Thanks for the question!

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