If you recently had or adopted your first child, chances are taxes aren’t top of mind. But even if you’re sleep deprived and haven’t left your home in months, you still have to do your taxes. Of course with a new child, your tax return will be a bit more complicated than just a return for yourself or a joint filing with a spouse. The flip side is that depending on your income, you could qualify for several new tax credits and deductions.
While tax deduction season only just kicked off, it’s a good idea to gather as much information as possible now so you’re not scrambling as the other deadline creeps up, tax professionals told USA today. There are also separate, more favorable tax brackets for heads of households.
How Much Do You Get Back After Tax Deduction For A Child In 2022?
Generally, people think having a child will automatically lower their tax bill or trigger a larger refund. But in many cases, it depends on your income level. Lower-income level. Lower-income taxpayers are generally eligible for more generous tax deductions and credits after having or adopting a child, said Jim Daniels a CPA and managing director at UHY Advisors, a tax and consulting services firm.
If you adopted a child in 2022, you might be able to qualify for a credit of up to $14,890 in adoption-related expenses you incurred per child. This could include adoption-related attorney fees, adoption fees, traveling expenses, and more. To claim the full credit, your modified adjusted gross income, which is generally close to your adjusted gross income, must be below $223,410. After that, the credit phases out and is not available for people.
