Dec
16

Tax Help for New Parents

December 16, 2011

dad in bed with cute daughter on topNewborns bring a host of changes to new parents’ lives, including new costs, responsibilities and moments of joy. Thankfully, the government is looking out for new parents, and is able to lessen the burden of new financial obligations like strollers and diapers with federal tax breaks. These tax benefits are explored in Eva Rosenberg’s article on the Equifax Finance Blog, “

Tax Tips: Tax Implications of a New Baby.

Parents, of course, can claim new dependency on their income

taxes. This dependency is worth $3,700 per child in 2011. Head of household receives a higher deduction and a lower tax rate. Single parents enjoy an even greater standard deduction.

Medical expenses for childbirth are usually only deductible if they exceed seven and a half percent of your adjusted gross out-of-pocket. These deductions have to be itemized, so if you’re going that route, make sure you save every record for tax purposes, and you will only benefit if these itemized deductions are greater than your standard deduction (including your new dependent). It is for this reason that it’s good to have insurance coverage, as it will help with prenatal care; pediatric care; prescriptions before, during, and after the birth; and all manner of other costs, including birthing expenses.

There are also state-level tax breaks to take advantage of. Soon-to-be and new parents should see the rest of the article, as it can keep them and their newborns safe from tax liability and expose other new deductions in the full article on the

Equifax Finance Blog.

Categories: Education, Featured

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

Leave a Comment

Copyright © 2008-2017 mRELEVANCE, LLC | Chicago Real Estate News | Chicagoland Real Estate Forum. All rights reserved. Thank you for visiting Chicago Real Estate News Chicagoland Real Estate Forum, Real Estate Listings and Information Provided by MLC Realty, Inc.
Internet Marketing by Marketing RELEVANCE

Equal Housing Opportunity

1819 W Grand Ave | Chicago, IL 60622