Tax-time for New Parents: What you need to know
As a new parent you are eligible for thousands of dollars via your tax refund. Yet each year millions of hardworking families miss out because they make mistakes or don’t file taxes. Here’s what you need to know to get the money you’ve earned.
Hold up. First, how much money are we talking about?
If you or your spouse are working, these tax credits can be ~$4,500. The main federal tax credits you may receive when you file include:
- Earned Income Tax Credit (as much as $3,584 for one child),
- Child Tax Credit (as much as $2,000 per child),
- Child and Dependent Care Credit (as much as $1,050 for one child),
- Recovery Rebate Credit (Up to $1,100 if you had a child in 2020 and didn’t receive your stimulus check supplements for them. $500 from first check, and $600 from second check)
The Earned Income Tax Credit amount is largest for single parents when income is $10-$30k, and for married families when income is $10-$50k.
Wow. That’s a lot of money. How can I make sure I get all the credits my family has earned at tax-time?
Follow our 8 steps to get PREPARED and to get your full tax refund. We’ve designed our New Parent Taxes 101 blog posts specifically for hardworking parents and their busy lives. Over the next few weeks we will share info on each step and guide you through the process. If you have questions in the meantime, head over to wwww.letsgetset.co.
Let’s get PREPARED in 8 steps.
P lan where you’ll file your taxes
R ound up all your tax documents
E valuate which filing status is right for you
P ick where you’ll deposit your refund
A sk tax questions and get answers
R eview your documents and file your taxes
E xpect your refund in the next few weeks
D o a dance because your taxes are done!
Now you can put that refund to work!
UP NEXT: Step 1: Plan where you’ll file your taxes. Match with a free tax prep partner and plan for how to use your refund. Check out a quick video
