Guide · Your situation
A new baby changes a lot, including your taxes. A child can change your filing status, unlock valuable credits and open new savings options. This guide covers what changes on your return and what to set up so you don't miss anything.
Most child-related tax benefits require your child to have a Social Security number, issued by the due date of your return. You can usually apply at the hospital when you fill out the birth certificate paperwork. For the child tax credit, the parent claiming it also needs an SSN; for married couples filing jointly, at least one spouse does.
A child who lives with you for more than half the year is generally your qualifying child and dependent. A baby born during the year counts as living with you for the whole year if they lived with you after birth. Only one person can claim a child, so separated or unmarried parents should agree on who claims the child before filing.
If you're unmarried and pay more than half the cost of keeping up a home for yourself and a qualifying child, you may be able to file as head of household. It has a bigger standard deduction and wider tax brackets than filing single.
For 2025, the child tax credit is worth up to $2,200 for each qualifying child under 17. If the credit is more than the tax you owe, up to $1,700 per child can come back as a refund (called the additional child tax credit), as long as you have enough earned income. The credit shrinks at higher incomes. It's figured on Schedule 8812.
If you pay for child care so you (and your spouse) can work or look for work, the child and dependent care credit covers part of those costs. Some employers also offer a dependent care FSA, which lets you pay for care with money taken out of your pay before tax. You generally can't use the same expenses for both.
A new type of savings account for children, called a Trump Account, was created by the 2025 tax law. For an eligible child born from 2025 through 2028 who is a U.S. citizen with a Social Security number, the Treasury will deposit a one-time $1,000 if a parent elects it. You open the account and request the $1,000 using IRS Form 4547, which can be filed with your tax return or online.
This page was written from the sources below. Official sources are from the IRS or another government body; secondary sources are tax publications used to cross-check new rules. Tax law changes, so always confirm with the official source for the year you're filing.