Gary Poster, with essential assists from Galyn Norwood, Phiroon Phihakendr, Jose Quijada, Pavandeep Kalra. My wife and I just had our first baby in 1999. I was just curious about the kind of deductions to which we are entitled. A new baby is a wonderful blessing.
Tax breaks can help offset some of the pain.
The Child Tax Credit is the handiest parental perk by far. Though it will hardly cover your annual Pampers bill, it's a help. This credit is now built into your W-4 withholding form. If both you and your spouse work, you can also deduct a portion of your childcare expenses. So no matter what your income, you'll get a bit of a break.