Having a child is an exciting time in a parent\u2019s life, from birth right up until \u2013 tax time? That\u2019s right, children can save you money when filing your federal income tax return.<\/p>\n
If you\u2019re the parent of a new child, you\u2019ll be happy to know that it doesn\u2019t matter what day throughout the year your baby was born, as even if his or her birthdate is December 31st<\/sup>, the IRS considers the child to have existed for the entire tax year. You\u2019ll be eligible to receive the full amount of the tax credits, and there\u2019s no reason to prorate any of the following tax breaks.<\/p>\n Exemption<\/u><\/strong><\/p>\n Every taxpayer is entitled to a personal exemption – $4,000 in 2015 \u2013 which is deducted directly from your taxable income, lowering the amount of your taxes. You\u2019re also entitled to one for every dependent you claim.<\/p>\n Child Tax Credit<\/u><\/strong><\/p>\n Each eligible child you claim as a dependent can net you up to $1,000 through the child tax credit. The credit is refundable, which means even if you don\u2019t owe any taxes, you can get a refund from this credit. However, certain income limitations apply based on your filing status as follows:<\/p>\n Also, the child must meet these requirements in order to qualify:<\/p>\n Additional Child Tax Credit<\/u><\/strong><\/p>\n This credit is available to parents who have an adjusted gross income that exceeds the limitations for the Child Tax Credit. If you don\u2019t qualify to receive the full amount allotted in the Child Tax Credit, you may claim the Additional Child Tax Credit. And like the first, this credit is also refundable.<\/p>\n","protected":false},"excerpt":{"rendered":" Having a child is an exciting time in a parent\u2019s life, from birth right up until \u2013 tax time? That\u2019s right, children can save you money when filing your federal income tax return. If you\u2019re the parent of a new child, you\u2019ll be happy to know that it doesn\u2019t matter what day throughout the year […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[124],"tags":[404,20,17,72],"class_list":["post-779","post","type-post","status-publish","format-standard","hentry","category-credits-2","tag-additional-child-tax-credit","tag-dependent","tag-tax-credit","tag-tax-credits"],"yoast_head":"\n\n
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