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Having a baby changes everything, including your taxes. New parents may claim larger deductions and new potential tax credits. They may also need to clear a few administrative hurdles, such as getting Social Security numbers and keeping records of deductible expenses.
Like changing diapers and getting by on less than four hours of sleep, filing your taxes as a new parent is unavoidable. Here are the basics to know about taxes after having a baby.
Does a New Baby Mean a New Exemption?
Before 2017, having a new baby meant introducing a new tax deduction to the family. Today, that's not the case. The Tax Cuts and Jobs Act of 2017 eliminated personal exemptions through 2025, replacing them with larger standard deductions. For this reason, adding a baby to your household doesn't add a new standalone tax deduction, though becoming a new parent may offer other tax benefits.
Will Your Filing Status Change?
One potential tax benefit is a change in filing status from single to head of household when you have or adopt a qualifying dependent child. Filing as head of household allows you to claim a higher standard deduction, which can lower your taxable income and save you money.
Here's how different standard deductions compare in 2024 and 2025.
| 2024 and 2025 Standard Deductions | ||
|---|---|---|
| Filing Status | 2024 | 2025 |
| Single or married filing Separately | $14,600 | $15,000 |
| Head of household | $21,900 | $22,500 |
| Married filing jointly | $29,200 | $30,000 |
Source: IRS
In addition to having a more generous standard deduction, head of household status also means more favorable tax brackets, which can help save even more on taxes.
Head of household status requires that you claim at least one qualifying dependent. If you aren't married to your child's other parent, only one of you may claim the child. The IRS has tiebreaker rules to help determine which parent claims a dependent child, if you need help deciding which parent can claim a dependent on their tax return.
If you're married, your filing status doesn't change with the birth or adoption of a child.
Can You Claim Tax Credits?
Many new parents can claim new tax credits, which lower your tax bill dollar for dollar. If you meet income and eligibility requirements, you may be able to claim one or more of the following tax credits.
Child Tax Credit
The child tax credit provides up to $2,000 in federal tax credits for each qualifying child you claim on your tax return. To qualify for the full $2,000 credit, your annual income must be $200,000 or less ($400,000 if married filing jointly). Up to $1,700 of your credit may be refundable, meaning that you may receive up to $1,700 back as a refund if your tax credit is greater than the total tax you owe. To qualify, your child must have a Social Security number, be under age 17 and be claimed as a dependent on your tax return.
Adoption Credit
A federal adoption tax credit can help new parents defray the considerable costs of adopting a child. The adoption tax credit covers qualified adoption expenses, including adoption fees, court and attorney fees, travel expenses and other direct expenses up to $16,810 per child in 2024 and $17,280 in 2025.
Additionally, you may be eligible for a tax break if your employer helped you cover adoption expenses. Income you receive from employer-provided adoption assistance may be excluded (or partially excluded) from your taxable income up to the same dollar limitations as the adoption tax credit.
Child and Dependent Care Credit
The child and dependent care credit provides a nonrefundable tax credit for care costs you incur so you can work, look for work or attend school. Currently, you can claim a credit of 20% to 35% of up to $3,000 in qualifying expenses for one dependent or up to $6,000 for two or more dependents. See IRS Publication 503 for full details on calculating your credit.
Earned Income Tax Credit
Adding a dependent to your household may help you qualify for the earned income tax credit (EITC)—or increase the amount of credit you can claim. The EITC is a refundable tax credit that gives a bit of tax relief to low- and moderate-income taxpayers. Eligibility is determined by income, household size and tax filing status.
To see whether or not you may qualify, here are the EITC income limits and maximum credits for 2024 and 2025.
| 2024 Earned Income Tax Credit | |||
|---|---|---|---|
| Number of Dependents | Single, Head of Household or Widowed | Married Filing Jointly | Maximum Credit |
| Zero | $18,591 | $25,511 | $632 |
| 1 | $49,084 | $56,004 | $4,213 |
| 2 | $55,768 | $62,688 | $6,960 |
| 3 or more | $59,899 | $66,819 | $7,830 |
Source: IRS
| 2025 Earned Income Tax Credit | |||
|---|---|---|---|
| Number of Dependents | Single, Head of Household or Widowed | Married Filing Jointly | Maximum Credit |
| Zero | $19,104 | $26,214 | $649 |
| 1 | $50,434 | $57,554 | $4,328 |
| 2 | $57,310 | $64,430 | $7,152 |
| 3 or more | $61,555 | $68,675 | $8,046 |
Source: IRS
5 Things to Do to File Your Taxes as a New Parent
When you're ready (or getting ready) to file your taxes for the first time as a new parent, these five steps cover the basics.
1. Get a Social Security Number
Your child will need a Social Security number if you want to claim them as a dependent on your tax return, claim the child tax credit or EITC, and eventually open bank accounts in their name. You can apply for a Social Security number for your baby at the same time you submit birth certificate paperwork in the hospital, according to the Social Security Administration. Otherwise, you can apply online at SocialSecurity.gov (though this could be a lengthier process).
2. Consider Deductions and Credits
While you're evaluating your tax situation, take the opportunity to check your filing status and standard deduction amount, consider itemized deductions (child-related and not), and review refundable and nonrefundable tax credits you may be eligible to claim. Tax preparation software often includes questionnaires that help you zero in on potential deductions and credits. Or, you may want to work with a tax pro who can help you find the deductions and credits you're eligible for.
3. Keep Good Records
Claiming tax benefits for your new bundle of joy may require good recordkeeping. For example, if you decide to open and fund a flexible spending account (FSA) through your employer, be prepared to document your qualifying expenses throughout the year. The same applies if you plan to claim the child and dependent care credit.
You may also want to save receipts and records for any out-of-pocket medical expenses you've incurred for prenatal care, hospital care and postnatal or pediatric care. If your costs exceed 7.5% of your adjusted gross income and you itemize your deductions, you may be able to deduct some of your medical expenses on your tax return.
4. Consider Tax-Advantaged Accounts
If you're receiving cash gifts for your new baby and want to set the money aside for their future education, consider a 529 education account. Money in a 529 account grows tax-free; withdrawals are tax-free too, as long as you use the money to pay qualifying education expenses.
Separately, you may be able to set aside pretax money for child care or out-of-pocket health care expenses with an FSA or employer-based child care subsidies. Check with your employer's benefits administrator to learn more.
5. Adjust Your Withholding
Adding a new person to your taxpaying household will almost certainly change your taxes. Consider adjusting your withholding when your baby is born so the amount you're setting aside reflects your new tax reality. If you aren't sure what your new tax liability will be, you may want to wait to re-evaluate until after you've completed your tax return. At that point, you'll have a clearer understanding of how much you need to withhold each paycheck to cover your tax bill.
The Bottom Line
Having a baby requires plenty of adjustments. New parents don't need a laundry list of tax-related tasks to add to their already long list of baby duties. If you're feeling like less is more, focus on the essentials: getting a Social Security number, checking your eligibility for the child tax credit and designating a safe place to keep tax-related records.
Whether this year's tax deadline is looming or months in the future, this could be a great time to meet with a tax advisor. They can help you identify potential tax credits and deductions, let you know which records to keep (and when you can forget about it), and offer tax planning suggestions that help ensure that you're not missing out on key tax benefits, this year and down the road.