Raise your hand if the phrase “Tax Season” makes you sweat.
Honestly, same. But it doesn’t have to because I’m here to share with you some really great news! There’s A LOT of money out there for parents to collect when you have a new baby. But can you believe every year parents miss out on $12 Billion by making mistakes on taxes or not filing at all!?
Follow these 4 tips to make sure you get the $$$ that’s owed to you:
1 – Make sure you have all your baby docs ready to go so you can add your baby to your taxes this year. This means knowing your baby’s SSN at a minimum, and sometimes having their birth certificate handy if you are going in-person to file taxes. Remember, if your child was born AT ANY POINT in 2022, not just in the first 6 months, you can put them on your taxes (assuming you were the one caring for them).
2 – Look out for two credits that get MUCH BIGGER when you have children – the Earned Income Tax Credit and Child Tax Credit. To get both you need to have made some money from work (gig work, hourly, salary – you name it), but together these credits can mean $5,200 back in your pocket with one kid and $9,100 for two children. That’s MAJOR money.
3 – Don’t forget the Child and Dependent Care Credit – a benefit that can decrease the amount of taxes you owe if you paid for childcare (like daycare) during 2022. Your kids will need to be 13 or younger but this credit may be worth up to $1,000 for one eligible child and $2,100 for two or more children.
4 – If you are a student, make sure you get your education-specific credits. If you, your spouse, or your child are going to college for a degree you may be eligible for the American Opportunity Credit. The credit is available for the first four years of your postsecondary education.
If you want tailored tax support as a parent, and want help with any of the tips above, check out Let’s Get Set. Let’s Get Set is powered by Column Tax and is tailored to help families making under $70,000 per year in annual income. We love that in addition to tax filing services, they offer free financial tools to help families make better financial decisions. This includes a refund estimator and bank match tool to help families choose a bank account that works for their needs.
Now… Raise your hand if these tips are going to make you breathe easier when you file this year!