I am going to give birth in November with my first child, how will this effect my taxes?

Question

What are the typical deductions?

Answer 1

It depends on your income. If it's low enough that you already don't owe any tax, then you wouldn't get any benefit from the additional exemption and the child tax credit, but then you'd almost surely be eligible for earned income credit - amount for that depends on your income and filing status.

If you owe tax now but your total tax liability for the year is under about $1400, having the baby will probably take that to zero. You would get an exemption (subtracted from your income before taxes are calculated) of $3400 for the baby - then if your total tax liability is under $1000, the child tax credit would take to to zero; if your tax liability is $1000 or more, the child tax credit of $1000 would be subtracted from your total tax. And again depending on your total income, you might also be eligible for EIC.

Good luck - not just with the taxes - enjoy the baby!

Answer 2

You will get to increase your dependent count by 1 on line 6d of the 1040 .
This will allow you $3300 extra in non taxed income , saving you about $400 a year . ( a mere fraction of what it will actually cost you to support the child )

Good luck !

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Answer 3

You will receive an exemption amount reducting your income before taxes of $3,400.00. Also, you will receive an child tax credit of $1,000.00 which will reduce your income tax. These figure, however, could end up being scaled down based upon your income level. Blessings to you and baby.

Answer 4

You will be able to claim one more dependent. If you are a single mom and meet the other qualifications, you may be able to file as "head of household". The tax credit of $1000 will be available to you, even if you owe no taxes. Depending on your earned income, you may qualify for EIC (Earned Income Credit), another tax credit.