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- Dawn
I would think it would be better to have the baby on the higher earner’s taxes to decrease tax liability
Illonapartner 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.
CaroCongrats 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?
StacyNo 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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