Should I hire a CPA for taxes, and who should claim our baby for the best return?

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  • #107465 Reply
    Dawn

      I would think it would be better to have the baby on the higher earner’s taxes to decrease tax liability

      #107466 Reply
      Illona

        partner will most likely qualify for EITC with one child at that income level – so probably partner…

        Definitely run it both ways though! Also – it doesn’t matter who’s insurance the baby is on, either of you could claim the baby – so just choose the “better” policy and you can make the decision on who claims baby in January.

        #107467 Reply
        Caro

          Congrats on baby! so the only warning I am going to give you is when/if you do, I was shocked the first year that I had to pay so much more in taxes.

          This is more pronounced if you have similar incomes I believe but just something to tuck away in the back of your mind (can read more about it marriage penalty tax search).

          I would run both scenarios.

          But I’d also look at the insurances as well are they comparable?

          #107468 Reply
          Stacy

            No need to pay a CPA. Your tax return prep is simple. Run the numbers for different filing status. And be sure to contribute to an HSA and Roth IRA to reduce your tax liability.

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