Tax Deduction, Baby!
October 26, 2008
The Child Tax Credit is available to taxpayers who have a “qualifying child.” A person is a “qualifying child” if he or she has not attained the age of 17 by the end of the taxable year and meets the requirements of 26 U.S.C. Sec. 152(c). In general, a qualifying child is any individual for whom the taxpayer can claim a dependency exemption and who is the taxpayer’s son or daughter (or descendent of either), stepson or stepdaughter (or descendent of either), or eligible foster child. – Wikipedia
Since we’re always looking for ways to save money we looked into the child tax credit and decided it was time to have another kid!
Baby on the Way
We’re due in April and the morning sickness is finally starting to subside. Of course, we’re not having a baby for the tax credit, kids are obviously much more expensive than any tax credit will ever cover.
The truth is we really enjoy being parents despite the drain on our finances and the trying of our patience. We’re actually pretty lucky, our son is a delight to be around most of the time. His terrible twos show their ugly head off and on but spending time with him is the highlight of my day.
Money Matters Less
Over the last few years I’ve learned that money plays an important role in the happiness and comfort of a family but there are definitely times when you do things despite the financial implications. For example, after we had our son, my wife left her job to be at home with him. His years as a baby and toddler will be over before we know it and we’re gladly willing to give up an income so he can have his mom around growing up.
Family time and mental health also took priority over money in my recent job change. I took a pay cut but now I can leave work on time every day and have the evenings with my family. I’m not in a bad mood because of a lousy day at work, I’m not constantly stressed about meeting deadline after deadline, the pager isn’t interupting us on the weekends, and I don’t have to worry about being at work over the holidays.
Less Money, Less Sleep
So come April we’ll have more baby expenses and we’ll get no sleep but we’re really excited about having another kid and all the fun experiences he/she will bring!
I also think good to mention the credit you can get when you send the kid to daycare! I read about it here, but would appreciate more details on it. Thanks
I think a job that you and the family are both able to live with and enjoy life
around is worth the pay cut
Enjoy this precious time. They fly the nest soooo fast
Of course, then there’s grandkids…… yes!
[...] far the most exciting thing for me last month was announcing that we’re having a baby! We don’t know boy or girl yet but we should find out in about a month, we’re [...]