Your baby is super adorable! Now, let’s make your tax refund just as incredible.
The average working new parent who makes less than $40K is eligible for up to $8,500 in federal credits this year. That’s a ton of money. We are here to make sure you get it.
Did you have a newborn in 2021?
These are a few tax credits you could be eligible for:
The Child Tax Credit
up to $3,600 for your new baby in 2021
The Recovery Rebate Credit
$1,400 for your new baby in 2021
The Earned Income Tax Credit
up to $3,600 if you worked in 2021 or 2019
Who qualifies as a dependent?
You can use this checklist to determine if you should claim a dependent on your taxes:
✅ Are they a citizen or resident?
The person must be a U.S. citizen, a U.S. national, U.S. resident, or a resident of Canada or Mexico.
✅ Are you the only person claiming them?
Only one person can claim a dependent. This requirement commonly applies to children of divorced parents or with unmarried parents. Here you must use the “tie breaker rules,” which are found in IRS Publication 501. These rules establish income, parentage and residency requirements for claiming a child.
✅ Are they related to you?
The child can be your son, daughter, stepchild, eligible foster child, brother, sister, half brother, half sister, stepbrother, stepsister, adopted child or an offspring of any of them.
✅ Do they meet the age requirement?
Your child must be under age 19 or, if a full-time student, under age 24. There is no age limit if your child is permanently and totally disabled.
✅ Do they live with you?
Your child must live with you for more than half the year, but several exceptions apply. Note that a newborn born anytime in 2021 would not need to have lived in the house for 6 months, and instead would just need to have lived there for more than half the time since birth. For example, if the child was born on December 31st, 2021 and lives with mom and meets the other requirements, it would be considered a dependent.
✅ Do you financially support them?
Your child may have a job, but that job cannot provide more than half of his or her support.
❗️The person you claim as a dependent CANNOT claim someone else as a dependent too.
You can’t claim someone who claims someone else on their taxes to get a benefit. So, for example, grandma can't claim mom, if mom is claiming her baby.
Being a new parent is hard, but filing your taxes shouldn't be.
We're here to guide you through, making sure you receive your maximum tax credits ($8,500) for the 2021 tax year!