skip to main content

2023 Tax Season Guide for New Parents: What to Know About the Child Tax Credit, EITC and More

2023 Tax Season Guide for New Parents: What to Know About the Child Tax Credit, EITC and More

New parents are often equally overjoyed and overwhelmed when it comes to their first child, but unfortunately, the new child also brings new complications to their tax returns. The key is navigating the myriad of tax credits and deductions available to lower your tax liability.

Partner Jim Daniels said the first step is to establish what tax credits or deductions you are eligible for. Most of the time, it is dependent on your income level, with more generous tax credits available for lower-income taxpayers. For those earning an adjusted gross income of $43,000 or less, there is the dependent care tax credit that allows a deduction of up to $3,000 if childcare services were employed and paid for. "You can usually recreate the expense anyway if you paid using a credit card or a check," said Daniels.

And do not forget to make adjustments to your W-4 withholding with your employer to include the new dependent. This will likely lower the refund you get next year but it'll increase the size of your paychecks going forward since less money will be withheld, Daniels said.


Read the full article published by USA Today.

Have a Question?

Fill out the form to speak with Jim

Hide Firm Disclaimer


UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc., and its subsidiary entities. UHY Advisors, Inc.’s subsidiaries, including UHY Consulting, Inc., provide tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors” and “UHY Consulting”. UHY Advisors, Inc., and its subsidiary entities are not licensed CPA firms. UHY LLP, UHY Advisors, Inc. and UHY Consulting are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. “UHY” is the brand name for the UHY international network. Any services described herein are provided by UHY LLP, UHY Advisors and/or UHY Consulting (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.

On this website, (i) the term "our firm", "we" and terms of similar import, denote the alternative practice structure conducted by UHY LLP and UHY Advisors, Inc. and its subsidiary entities, and (ii) the term "UHYI" denotes the UHY international network, in each case as more fully described in the preceding paragraph.