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1.01.2026
Tax Tips for New Parents 2026
Welcoming a new baby, adopting a child, or raising a grandchild brings joy—and new financial responsibilities. Fortunately, the IRS offers a variety of tax benefits that can help lighten the load for parents and caregivers. Here are the most important tax tips every new parent should know to maximize their tax savings.
1. Obtain Your Child's Tax Identification Number (TIN)
To claim any tax benefits, such as the Child Tax Credit, parents must have a Social Security Number (SSN), Adoption Taxpayer Identification Number (ATIN), or Individual Taxpayer Identification Number (ITIN) for their child. This is essential for confirming your child’s eligibility for tax credits.
- For a Social Security Number: Apply online at the Social Security Administration’s website. After submitting your application, visit your local SSA office to complete the process. Your child’s SSN will arrive by mail within 14 days.
- For an Adoption Taxpayer Identification Number (ATIN): If you’re adopting and haven’t yet received your child’s SSN, you can apply for an ATIN through the IRS to temporarily claim your child as a dependent on your tax return.
- For an Individual Taxpayer Identification Number (ITIN): If you’re ineligible for an SSN, an ITIN is required for tax reporting. This number is used by non-U.S. citizens or residents who need a taxpayer identification number.
2. Review Your Tax Withholding
Adding a child to your family could mean eligibility for various tax credits and deductions, which could impact how much tax you owe. To avoid surprises at tax time, check your withholding.
- Use the IRS Withholding Estimator: This online tool helps you determine the appropriate amount of tax to withhold from your paycheck based on your family situation. You may need to submit an updated Form W-4 to your employer to adjust your withholding accordingly.
3. Maximize Tax Credits and Deductions
There are several key credits that can help new parents save money:
- Child Tax Credit: The Child Tax Credit provides up to $2,000 per qualifying child under the age of 17. If your income is below a certain threshold, you could receive a refundable credit, meaning you may get money back even if you owe no taxes. Check your eligibility using the IRS tool: Does My Child Qualify?.
- Child and Dependent Care Credit: If you pay for childcare while you work, you may qualify for the Child and Dependent Care Credit, which covers up to 35% of qualifying expenses. For one child, you can claim up to $3,000; for two or more children, the limit is $6,000. Don’t forget to include the care provider's TIN.
- Adoption Tax Credit: For those who adopt a child, the Adoption Tax Credit helps offset adoption-related expenses. This credit is available for both domestic and international adoptions, as well as foster care adoptions.
- Earned Income Tax Credit (EITC): Low- to moderate-income families may qualify for the Earned Income Tax Credit. This credit helps reduce the amount of tax you owe and may even result in a refund. If you meet the income and filing requirements, you could receive a substantial benefit. Check eligibility using the IRS EITC Assistant.
- Credit for Other Dependents: If you have a dependent who doesn’t qualify for the Child Tax Credit (such as a child over 17 or a dependent adult), you may still be able to claim the Credit for Other Dependents, worth up to $500 per dependent.
4. Access Free Tax Help
If you’re unsure about how to claim these credits or need help filing your taxes, consider the IRS Volunteer Income Tax Assistance (VITA) program. VITA provides free tax preparation services for eligible individuals, including low- to moderate-income families and those with disabilities.
- Find a VITA provider: Visit the IRS VITA Locator to find free tax preparation assistance near you.
5. Stay Informed and Seek Professional Guidance
Tax laws can be complex, especially when there are changes in your family’s situation. While the IRS provides helpful online tools and resources, it’s always a good idea to consult with a tax professional to ensure you're taking full advantage of the credits and deductions available to you.
Disclaimer:
First 5 Nevada does not provide tax, legal, or accounting advice. This material is intended for informational purposes only. Always consult with a licensed tax professional for personalized advice and assistance.
By following these tips, new parents can better navigate the tax benefits available to them and ensure they receive the financial support they deserve. Whether it’s the Child Tax Credit, the Earned Income Tax Credit, or other helpful deductions, making the most of your tax return can provide much-needed relief during this exciting but financially challenging time.
