We had our first child in 2009. How is he going to affect my refund?
1) you will have another personal exemption of $3650 taken off your income
2) you will receive a $1000 tax credit for the child, this isn't reducing your income by $1000 but it reduces the tax, so if you were to owe $6000 in taxes last year this credit is taken off of that reducing it to $5000 then whatever you paid in for the year is subtracted from that $5000 and if you paid more that is your refund and if you paid less that will be what you owe.
3) If you had this child in daycare at all last year get the tax information from them as you can write off a % of the daycare expense you paid, it is based on your income as far as how much you can write off. This is also a tax credit that reduces the amount of tax you were suppose to pay.
You will probaby receive a bigger refund than in years past, unless you adjusted the amount of tax withheld from your paychecks with your employer prior to the birth. If you didn't change anything and got refunds in the past this year will be a bigger refund.
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