How Does Having a Baby Affect Taxes?

Having a child opens up several tax benefits. You may qualify for the Child Tax Credit (up to $2,000 per child), the Child and Dependent Care Credit for daycare costs, and the Earned Income Tax Credit. Your child needs a Social Security number to claim any credit — apply for one right after birth. If your employer offers a Dependent Care FSA, enroll to pay for childcare with pre-tax dollars.