What many new parents may not have at the front of their minds when becoming first-time parents is the paperwork, taxes, legal documents, and other "adulting" things that come with having a baby — and I'm definitely in this boat. We are more focused on the health of the baby, whether the nursery is finished, and getting everything stocked and ready to go for when baby comes into the world. However, all the "adulting" stuff is definitely important, especially when it comes to your finances. So how does having a child affect your taxes? Believe it or not, there are quite a few "perks," if you will, for having a baby. Other than having a sweet baby and lifelong family member, of course.
In an email interview with Romper, Lydia Desnoyers, CPA, CFE and owner and founder of Desnoyers CPA, LLC, says, "First, I’d like to congratulate new parents on their new bundle of ‘tax credits,'" showing that even CPAs can have a sense of humor — and though funny, she is absolutely right about those tax credits and perks. There are many different incentives you can take advantage of once you file your taxes and claim your newborn baby. And all of the CPAs I interviewed said it's important to tell your CPA or other tax advisor you're having a baby as soon as possible.
Brent Knowles, CPA, tells Romper, "Some [CPAs] may want to know sooner, but I would say let them know before the start of the tax season in case they may have more questions to ask before you supply your tax information." Plus, there could potentially be some tax deductions for medical bills you incur while pregnant, according to a Top Tax Defenders article. So what are these perks and things you need to know about filing taxes once your new family member arrives? These CPAs have you covered.