Welcoming your first child or adopting one in 2024 might leave you overwhelmed, making tax filing seem like a low priority. However, despite being exhausted and mostly at home, you are still required by law to file your tax return in 2025.

With the arrival of a new baby, your tax situation becomes more complex. On the upside, this could also open the door to various new tax credits and deductions.

Here’s what rookie parents need to be aware of for the 2025 tax season and beyond:

Obtain a Social Security Card for Your Child

The first step is ensuring your child has a Social Security number, advises John Karls, a tax partner at Armanino, a national tax advisory firm. “You won’t be able to claim your child as a dependent without this number,” he explained.

Many parents obtain this number at the hospital during the birth of their baby.

If you haven’t applied for it yet, Karls recommends doing so soon. However, it can take time for the Social Security Administration to verify your child’s birth certificate and identity, so he suggests filing for a six-month tax extension while you are waiting.

Head of Household Status

If you are a single parent, you will be classified as the head of the household for tax purposes. This status allows you to claim a $21,900 standard deduction for the 2024 tax year, compared to only a $14,600 standard deduction for single filers without dependents.

Additionally, there are distinct, more favorable tax brackets available for heads of households.

It’s essential to remember that the IRS won’t automatically recognize your single parent status; you need to mark that option or ask your tax preparer to do so.

Tax Refunds for Having a Child

Many people assume that having a child will decrease their tax burden or boost their refund. However, this can vary depending on individual income levels. Typically, taxpayers with lower incomes qualify for more significant tax credits and deductions when they have a child, according to Jim Daniels, a CPA and managing director at UHY Advisors, a tax and consulting firms.

Adoption Tax Credit

If you adopted a child in 2024, you could be eligible for a credit of up to $16,810 to help cover any adoption-related expenses. These expenses can include legal fees, adoption fees, and travel costs. You are allowed to claim this credit over multiple years, but the maximum you can claim for one adoption is $16,810.

To receive the full credit, your modified adjusted gross income must be $252,150 or less. If your income exceeds this amount, the credit begins to decline. Those with a modified adjusted gross income over $292,150 will not qualify for the credit.

Note that this credit is non-refundable, meaning if you don’t owe taxes, you won’t be able to claim it. However, you can carry it over to future tax years to help reduce future tax debt.

Income Limits for Child and Dependent Care Credit

If you are working and paying for childcare services, you might qualify for the Child and Dependent Care Credit. To be regarded as a new parent, you must have had earnings in 2024 and incurred work-related childcare expenses, along with other eligibility criteria. You can claim up to $3,000 of expenses for one child or $6,000 for two or more children. The actual credit is a percentage of these expenses, so check IRS Publication 503 for calculations.

Qualifications for Earned Income Tax Credit

Having a child might also make you eligible for the Earned Income Tax Credit. If you have one child and your adjusted gross income was $49,084 when filing alone or $56,004 when filing jointly with a spouse in 2024, you could claim a refundable tax credit of up to $4,213.

Adjust Your W-4 Withholding

Lastly, ensure you submit an updated W-4 form to your employer to indicate that you have a new dependent. This will likely reduce your tax refund for the next year, but it will increase your take-home pay going forward, as less will be withheld from your paycheck.