What New Parents Need to Know About Taxes

Did you have your first child in 2013? Congratulations!

As a new parent there are a 5 things you need to know about your taxes this year with your new child.

#1 NEW SOCIAL SECURITY NUMBER

Do you have your child’s social security number? Make sure you have it prior to your filing.

#2 W-2 FILING STATUS

This only effects a single parent. As a new parent you may be able to claim ‘head of household.’ This filing status will entitle you to have a $8,950 tax deduction vs single filing status which is a deduction of $5,700. Consult with your tax preparer.

#3 W-2 WITHOLDINGS

Now is the time to tax to your tax preparer to discuss the ideal withholdings to maximize the amount of money in your pocket each month. By properly planning you can avoid surprises with your tax returns!

#4 CLAIM A DEPENDENT        

For many first time parents this is your first eligible dependant. Claiming a dependant will affect your withholdings and ability to claim additional deductions.

#5 CHILDCARE

You may be eligible to deduct up to $3,000 in your child care expenses if you are working during childcare. Proper documentation is needed for filing such as the caregiver or center’s Tax ID # or Social Security #.

For more information about these 5 items visit the full article by Phoenix Tax Consultants at: