ALL >> Business >> View Article
Having A New Baby? These Tax Tips Are Essential
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/
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/
Business Articles1. We Manufacture Latest Design Of Custom Perfume Boxes
2. Hiring Housekeeping Hoboken Services For Your Apartments
Author: Glow Up Clean
3. Your Purpose-driven Path: How To Reinvent And Re-energize Yourself With A Fulfilling, Joyful Purpos
Author: eWomen Network
4. Custom Cereal Boxes In Unconventional Ideas At Gotoboxes
Author: Mark Jackson
5. Things To Consider When Building A Waterfront Home | Commercial Construction Services
Author: Jrossi Construction
6. Custom Cbd Oil Packaging Boxes With High Quality Material
7. How To Perform Iso 13485 Training Requirements For (qms)
Author: Punyam Academy
8. Environment-friendly Disposal Solutions For Deepwater Dredged Material
Author: Millie Smith
9. Recent Developments That Will Change The Entire Face Of Networking
Author: Ronel Noel
10. Advantages Of A Commercial Agricultural Glass Greenhouse
Author: yang huimin
11. The Latest Mobiles In India Are Fun To Use
Author: Jakson Lee
12. Custom Popcorn Bags Uk Wholesale Discount At Gotoboxes
Author: Jordan Harry
13. Top Benefits From Hiring The Top Korean To English Translation Services
Author: LA Translation
14. How Translation Companies Help Different People
Author: LA Translation
15. What Is The Purpose Of Custom French Fries Boxes?