New Baby

In order to claim your new child as a dependent on your tax return, the first thing you need to do is get him or her a Social Security number. If you don't, you'll delay the process. You can request a Social Security card at the hospital when you apply for a birth certificate.

$1,000 Child Credit

Kids are great. A new baby gives you a tax credit AND the ability to claim a tax deduction. With a credit, your tax bill is reduced dollar for dollar, while a deduction reduces the amount of income that Uncle Sam can touch.

Single Parent

If you're a single parent, you may be able to file your returns as head of household rather than single. The advantage? You get a bigger standard deduction, and you'll fit into a better tax bracket. In order to be considered head of household, you must pay more than half the cost of providing a home for a qualifying person (your child).