Got a tax question (re: children/dependants)

[SaltBoy]

My wife and I are expecting our first child right around Christmas time.

I am wondering, do we get the *full* tax credit for all of 2006 for having this kid before the year is over, or is the amount prorated?

 

[Queasy]

You'll get the full tax credit for the entire year.

 

[DeadByDawn]

full baby, my daughter was born on dec 25th and she saved me a bundle that year

 

[SaltBoy]

Cool - thanks guys!

DeadByDawn - just curious, how much did your daughter save you?

 

[DeadByDawn]

Originally posted by: SaltBoy
Cool - thanks guys!

DeadByDawn - just curious, how much did your daughter save you?

I wanna say about $1500. It was about 5 years ago tho.

 

[dquan97]

If your wife gives birth before 1/1/07, you are entitled to a full year's worth of deductions and credits. IIRC, main ones are the $1,000 child tax credit and additional exemption.

 

[Dr. Detroit]

Caution: If singe, and your AGI is greater than $110K you will not recieve the extra deduction. Dependants get phased out for high wage earners.