Life changes
You Had a Baby: What Changes on Your Taxes
A child born at any point in the year counts for the whole year. The most important thing you can do now is make sure your baby has a Social Security number before you file.
Reviewed by LaToya Clark-Thompson, FounderLast updated
What changes on your return
A baby born during the year, even on the last night of it, is treated as having lived with you all year. That one change can open several benefits:
- The child tax credit, which requires the child to have a valid Social Security number. Under current law, at least one parent also needs a Social Security number valid for work.
- The earned income credit, if your income is in the range where it applies
- Head of household filing status, if you are unmarried and paid more than half the cost of keeping up your home
- The child and dependent care credit for daycare or a sitter you paid so you (and your spouse) could work, claimed on Form 2441
Each credit has its own income limits and phase-outs, which change, so the IRS instructions for the year are the authority. We run the numbers on your actual return.
Forms that show up
- The baby’s Social Security card, usually requested at the hospital with the birth certificate paperwork
- Form 2441 for child care expenses, with each provider’s name, address and tax ID
- Your W-2, where box 10 shows any dependent care FSA money your employer set aside
- Form 4547, if you choose to open a Trump account for the child. Children born during the program’s pilot window may be eligible for a one-time government contribution; we check eligibility on your return.
What to bring to your appointment
- The baby’s Social Security card, or the number exactly as issued
- Child care receipts and the provider’s tax ID (a daycare will give you this; for an individual sitter, ask for it when you start)
- Your W-2s, including box 10 if you used a dependent care FSA
- Any statement from a state 529 plan if you opened one
- Hospital and doctor bills only if your medical costs were unusually high, since they are deductible only if you itemize and pass a floor tied to income
See our tax prep checklist for everything else.
Common mistakes
- Filing before the Social Security number arrives. Without it the child tax credit cannot be claimed, and you would need to amend later.
- Claiming the same child care money twice: expenses paid with FSA dollars cannot also count toward the credit.
- Unmarried parents both claiming the baby. Only one of you can, and the rules decide which, not a coin toss.
- Leaving the W-4 as it was. Adding a dependent on your W-4 lowers withholding during the year; skipping it means waiting for the refund instead.
When it is worth having a preparer
The first year with a child is when the credits are most likely to be missed or claimed in the wrong place. If you are unmarried, share the baby with a partner, used an FSA, or changed jobs during parental leave, it is worth having us prepare the return. Preparers are required to ask detailed questions before claiming these credits, so expect us to ask about who lives in your home and who pays for what. Book through tax preparation, and if your family is growing through adoption see adopting a child.
Frequently asked questions
Can I claim my baby if they were born in December?
Yes. A child born at any time during the tax year is treated as living with you for the whole year, as long as the child lived with you for the time they were alive. That means you can claim the child tax credit and other benefits for the full year, provided the baby has a Social Security number by the time you file.
What if my baby’s Social Security number has not arrived yet?
Wait to file, or file on time and amend once the number comes. The child tax credit requires a Social Security number issued by the due date of the return, including extensions. Filing with a placeholder or without the child usually means a second return later. If the card is slow to arrive, Social Security can confirm the number has been assigned.
Can I claim daycare on my taxes?
Often, yes, through the child and dependent care credit on Form 2441. The care has to be so you, and your spouse if married, could work or look for work, and you need the provider’s name, address and tax ID. Money paid through a dependent care FSA cannot also count toward the credit. We work out the split on your return.
Should I change my W-4 after having a baby?
Usually. Listing the new dependent on your W-4 lowers what is withheld from each paycheck, so you see the benefit during the year instead of in a larger refund. If you would rather keep a bigger refund, you can leave it. The W-4 withholding calculator shows the effect before you change anything.
Not the question you had? The full tax FAQ covers more ground, and our client reviews say what the work is actually like.
Related pages
You adopted a child
The adoption credit, which expenses qualify, timing rules and getting a tax ID for your child.
Learn moreSingle parent, head of household
The head of household tests, who counts as a qualifying person and the mistakes to avoid.
Learn moreYou got married
Filing status, withholding, name changes and Marketplace coverage after the wedding.
Learn moreYour child is getting older
Why the refund drops when a child ages out of credits, and what still applies.
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