i just had a baby in december and i thought their was a bigger credit than just the standard $1000 per child...what form do i need or where do i need to be looking to find this???
2007-02-07 15:25:59 · 5 answers · asked by Shawn L 1 in Business & Finance ➔ Taxes ➔ United States
The $1,000 you are referring to is the non-refundable Child Tax Credit. This is not an amount of money they can cut you a check for, but it will reduce any tax liability up to $1,000. (If your tax liability is only $300, then your Child Tax Credit is $300.)
If your income is within eligible limits, you may qualify for Earned Income Credit, this is the one they can cut you a check for. There is also the possibility that if you meet certain requirements, you may qualify for the Additional Child Tax Credit, which is another one that can be cut in a check (this one basically returns some or all of the SS/medicare withholdings from your W-2).
As your child was just born in December, make sure you have his/her social security number. You can't claim him without it.
2007-02-07 15:45:09 · answer #1 · answered by Anonymous · 1⤊ 1⤋
You get the standard $1,000 credit per child, plus the personal exemption, which is a $3,300 deduction. That's it.......you don't get any financial help from the government to raise your child.
You might want to consider moving to Germany. In an attempt to increase their birth rate, which is the lowest in Europe, Germany instituted a larger tax free subsidy when a couple has a child and opts to stop working and be a stay at home mom. The government will pay the stay at home mom 67% of their former wages, up to 1,800 euros per month (approx. $2,400), for up to one year.
2007-02-07 15:49:53 · answer #2 · answered by jseah114 6 · 1⤊ 0⤋
You may be thinking of the Eanred Income Tax Credit. If your income is less than around $30,000 (or higher if married and with 2 kids), the Earned Income Credit (EIC) is available, too. It is based on the amount of, well you guessed it, earned income. It can be several thousand dollars more.
And despite what "unknowledgeable Only" says above me, you MUST have an SSN to claim a child.
Tax Advisor
2007-02-08 00:29:58 · answer #3 · answered by WealthBuilder 4 · 0⤊ 0⤋
There's not a bigger credit for newborns vs. other dependants.
As long as you file the baby as a dependant the credits/deductions are standard.
2007-02-07 15:44:44 · answer #4 · answered by Anonymous · 1⤊ 1⤋
No, it's just the standard $1000 per child.
And you do not need a Social Security number for your child to claim him/her if he/she is under 1 year of age.
2007-02-07 16:22:19 · answer #5 · answered by TheOnlyBeldin 7 · 0⤊ 2⤋