tax question and having a kid

ldrosophila
ldrosophila Posts: 7,512 Member
in Chit-Chat
Tax question if you were about to have a kid and you worked for most of this year as an independent contractor, but started a regular salaried position about July do you think tax wise it would be more prudent to have the kid in 2013 or see if you can hold off and have a New Year's Baby?

Replies

  • DMZ_1
    DMZ_1 Posts: 2,889 Member
    I'm not an accountant, I just play one on TV.

    But seriously, babies show up when they show. My sense is that it is hard to time a birth around what might be advantageous from a tax perspective.
  • ldrosophila
    ldrosophila Posts: 7,512 Member
    I'm not an accountant, I just play one on TV.

    But seriously, babies show up when they show. My sense is that it is hard to time a birth around what might be advantageous from a tax perspective.

    well on Monday if it goes fast well have a 2013 deduction if it goes slow I have a NYE baby, No other real deductions.
  • MinMin97
    MinMin97 Posts: 2,674 Member
    Interesting idea, I won't knock it. However, I have never given taxes any importance in having children. One thing will be nice, they do give you a little tax credit for the new baby, so you might like having that this Spring?


    ETA Congratulations on your soon-to-arrive blessing!
  • ldrosophila
    ldrosophila Posts: 7,512 Member
    Interesting idea, I won't knock it. However, I have never given taxes any importance in having children. One thing will be nice, they do give you a little tax credit for the new baby, so you might like having that this Spring?

    LOL I know strange but seriously ol' Uncle Sam hit me so hard last year I'm still recovering. Hoping with what extra I have been paying to IRS and the baby well see some sort of return. However, having a New Years Baby is as cute as can be.

    Just curious if given the choice what would one do?
  • athensguy
    athensguy Posts: 550
    They best day, tax-wise, to have a baby is Dec. 31.
  • MinMin97
    MinMin97 Posts: 2,674 Member
    They best day, tax-wise, to have a baby is Dec. 31.

    lol I can just see it, birthing Mommy checking her wrist-watch. :tongue:

    Why Dec 31st.....srs?
  • ldrosophila
    ldrosophila Posts: 7,512 Member
    They best day, tax-wise, to have a baby is Dec. 31.

    lol I can just see it, birthing Mommy checking her wrist-watch. :tongue:

    Why Dec 31st.....srs?

    pushing extra hard!! Come on baby we've got 10...9...8...7...

    Maybe if you greased the OB's hands enough you could have a New Year's Baby born in 2013...wink wink wink
  • the_dude00
    the_dude00 Posts: 1,056 Member
    I'm not a CPA but I am pretty sure the Child has to live with you at least 6 months during the year, making it of no difference to you

    http://www.irs.gov/uac/Ten-Facts-about-the-Child-Tax-Credit
  • ldrosophila
    ldrosophila Posts: 7,512 Member
    I'm not a CPA but I am pretty sure the Child has to live with you at least 6 months during the year, making it of no difference to you

    well there's the rub g-d damn uncle sam! Even a newborn wouldnt qualify I carried him for 9 months for the year of 2013.

    http://www.irs.gov/pub/irs-pdf/p972.pdf

    i think youre right and sadly it wouldnt even be enough to make a ding :sad:

    Guess were gonna try for a NYE baby!! :drinker:
  • JameicaDenise
    JameicaDenise Posts: 62 Member
    im a Tax Practitioner, So let me start by saying congrats on the baby! and as long as you have your baby by Dec 31 you can claim your child for this year and receive all the credits... that's one good thing about having a baby in late December this is the exception to the 6 month rule that a child must live with you a least 6 months to receive EIC and other credits.. Good luck
  • the_dude00
    the_dude00 Posts: 1,056 Member
    It might help a little bit. It is a Credit, and not an AGI reduction so it would actually save you a G
  • ldrosophila
    ldrosophila Posts: 7,512 Member
    im a Tax Practitioner, So let me start by saying congrats on the baby! and as long as you have your baby by Dec 31 you can claim your child for this year and receive all the credits... that's one good thing about having a baby in late December this is the exception to the 6 month rule that a child must live with you a least 6 months to receive EIC and other credits.. Good luck

    great to know...there is also a $3900 credit correct for dependency and couldnt you write off the hospital expenses that insurance didnt cover?
  • Bubblilios
    Bubblilios Posts: 3
    I am a taxpayer and JameicaDenise is right you can claim the baby all year long if it is born on December 31 before 11:59pm.Depending on what you made and (your husband) you can get EIC, Child credit and Additional Child Credit. If you have over $3900 in itemized deduction you can also claim health insurance, doctor bill and prescriptions out-of pocket.

    Congratulation on the new little one.

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