123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Having A New Baby? These Tax Tips Are Essential

Profile Picture
By Author: Leon A. Elwell
Total Articles: 47
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

There are big moments in everyone’s life. A new birth is one of them. The irony is that most life events also have tax consequences attached to them. When a new member is added to your family or someone you know, here are some tips to consider.

Get A Social Security Number. Obtain a Social Security number for your new addition prior to filing your tax return. To fail to do so not only delays your tax filing, you can also be subject to a $50 penalty. So get this process started right away to avoid unneeded delays at the end of the year.

Put these tax benefits on your radar too. When recalculating your withholdings also account for common tax benefits that come with new dependents. The most common of these benefits includes the Earned Income Credit and the $2,000 Child Tax Credit.

Think funding. It is never too early to start building your little one’s net worth. You can provide gifts of up to $15,000 ($30,000 for married couple) each year in a savings or investment account. This strategy helps take advantage of the kiddie tax exemption for up to $2,100 of unearned income in your child’s name.

Dependent care help. There is also a Dependent Care Tax Credit for those who put their child in a qualified daycare while they work. First check for a pre-tax benefit of up to $5,000 from your employer as part of your employee benefit package. Even if it is not available through work, you can qualify for the credit by using your direct payments to the qualified daycare.

Consider their education. 529 College savings plans and other tax beneficial educational savings plans are worth considering. Virtually any relative or other adult can start saving tax-free money in your new child’s name. With the ever-higher cost of a college education this benefit is worth beginning as soon as possible.

New filing status? If you are married with a new addition, your filing status remains the same. However, if you are single with a new birth your filing status could be more beneficial to you if you qualify as a Head of Household filer.

Per the tax code, your new bundle of joy provides some joy to your tax situation as well.

If you’d like to learn more about deductions and tax planning for your family, scheduling a meeting with our team today: https://www.bas-pc.com/appointment-center/

More About the Author

Business Accounting Systems, P.C., is a South Jersey Public Accounting Firm located in West Deptford, New Jersey that has been providing excellence in servicing the accounting, payroll, and tax needs of independently owned small businesses throughout the Tri-State area. For More Info : Visit Here : https://www.bas-pc.com/

Total Views: 28Word Count: 393See All articles From Author

Add Comment

Business Articles

1. How To Find Cheap International Flights Ticket
Author: How To Find Cheap International Flights Ticket

2. Tips For Choosing The Right Iphone Repair Service Centre
Author: Keyur Patel

3. Spit Roast Caterers Sydney’s Tips To Throw A Rocking Corporate Party
Author: Mario Sazos

4. Object Oriented Programming Language
Author: Object Oriented Programming Language

5. We Produce Pre-roll Packaging Use Quality Material
Author: Jeff Parker

6. Tips To Increase Resilience In Your Workforce
Author: Edmund Brunetti

7. Guide To Know About The Top Leading Cement Brand In India - Wonder Cement
Author: Nirav Dedhia

8. Textile Fabrics Market Business Overview, Challenges, Opportunities, Trends And Analysis By 2025
Author: Market Research Future

9. Elite League Of Innovative Entrepreneurs, 2019
Author: CIOLook

10. Top 5 Lead Generation Strategies For A Highly Successful Business
Author: Surabhi Joshi

11. Dressy Tunic Tops To Wear With Leggings: The Mature Way To Pull Off The Legging Look
Author: Katie Kutsunis

12. Silicone Coating Market New Industry Research On Present State & Future Growth Prospects By 2025
Author: Market Research Future

13. Hire Professional Hair And Makeup Services In Key West
Author: Hire Professional Hair And Makeup Services in Key

14. Choosing Family Activities For The Summer
Author: Mark Luke

15. Rehabilitation Centers Near Me
Author: Rehabilitation centers near me

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: