The short answer
A baby born any time during the year, even on December 31, can generally be claimed on that year's return. For 2025 returns that can mean a child tax credit of up to $2,200, possibly a better filing status, and other credits. Your baby needs a Social Security number before your return is due to get the child tax credit.
Last reviewed: October 21, 2026
Step one: the Social Security number
Almost every tax benefit for your baby needs a Social Security number. Most parents apply at the hospital when they fill out the birth paperwork, and the card comes in the mail. If you didn't, you can apply through Social Security.
For the child tax credit, the number has to be issued before your return's due date (including an extension). If the card hasn't come yet, talk to us before you file.
Got a Trump Account notice with the card?
Babies born 2025 through 2028 who are U.S. citizens with a Social Security number can get a one-time $1,000 from the U.S. Treasury in a Trump Account. You have to sign up. Here's what the notice means and how to sign up safely.
The child tax credit
- Up to $2,200 per child under 17 on 2025 returns.
- Up to $1,700 of it can come back to you even if you owe no tax (the "additional child tax credit"). You need at least $2,500 of earned income for that part.
- The full credit applies with income up to $200,000 ($400,000 married filing jointly). Above that it shrinks.
- You (or your spouse, if filing jointly) also need a valid Social Security number for work.
Born in December still counts
A child has to live with you for more than half the year to be your qualifying child. For a baby, the IRS counts only the part of the year the child was alive. So a baby born in December who came home with you generally counts for the whole year.
Your filing status may change
If you're not married, a baby who lives with you can let you file as head of household instead of single, as long as you pay more than half the cost of keeping up your home. Head of household has a bigger standard deduction and lower tax rates. A qualifying child can also make the Earned Income Tax Credit larger, depending on your income.
Paying for child care
Child and dependent care credit. If you pay for care for a child under 13 so you can work or look for work, you may get a credit. It covers up to $3,000 of costs for one child or $6,000 for two or more. Starting with 2026 returns the credit is 20% to 50% of those costs depending on income (up to $1,500 for one child, $3,000 for two or more). You'll need your care provider's name, address and tax ID number.
Dependent care FSA at work. If your employer offers one, starting in 2026 you can set aside up to $7,500 a year ($3,750 if married filing separately) before tax for child care, up from $5,000. You can't use the same dollars for both the FSA and the credit. Having a baby usually lets you change your benefit choices mid-year, so check with HR soon.
Adopted?
The adoption credit is up to $17,280 per child for 2025, and starting in 2025 up to $5,000 of it can come back to you even if you owe no tax.
Saving for later
- Trump Account: the $1,000 from the Treasury, plus up to $5,000 a year from family. How it works.
- 529 college savings plan: contributions aren't deductible on your federal return (and Florida has no state income tax), but growth comes out tax-free when it's spent on qualified education. Up to $20,000 a year can go toward K-12 tuition starting in 2026.
Check your paycheck withholding
New credits mean you may be having too much tax taken out of each paycheck. Updating your W-4 can put that money in your pocket now instead of waiting for tax time. See how to fix your withholding.
Official sources
- IRS: Child Tax Credit
- IRS: Child and Dependent Care Credit
- IRS Publication 501: Dependents, Standard Deduction and Filing Information
- IRS: Tax credits for individuals (adoption credit)
- IRS Topic 313: 529 plans
- IRS: Trump Accounts
First tax year with a baby?
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Disclaimer: This page is general information, not tax advice. Every situation is different, and tax rules change. Reading this page doesn't make you a client.