Tax Deduction, Baby!

October 26, 2008

Childtaxcredit

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!

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Ben

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Ben
Ben Edwards, the founder of Money Smart Life, saved up enough to buy a Nintendo back when he was 12 years old. When he used the money to buy shares of Wal-Mart stock instead, he knew he wasn't like the other kids... His addiction to personal finance has paid off for his family and now he's helping you to afford the life that you want. Check him out on the web at Google Plus, Twitter and Facebook.

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Comments

3 Responses to Tax Deduction, Baby!

  • marci

    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!

  • John

    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

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