14 THE QUEENS COURIER • FEBRUARY 23, 2017 FOR BREAKING NEWS VISIT WWW.QNS.COM Call Now & End Your Tax Nightmare! �������������������������������������� �������������������������������������� �������������������������������� �������������������������������������������������� ������������������������������������������ Co-Author of the best selling book “Breaking the Tax Code” �������������������������������� �������������������������������� Salvatore P. Candela, EA, ATA, ABA Enrolled Agent - Tax Advisor ���������������������������������������������������������������� ������������������������������������������������������ “Over Two Decades Of Personalized Service” LJC@loucarino.com TAX TIPS Financial Steps to Take After a Child Is Born BY JOHN SAVIGNANO The arrival of a newborn can be a joyous occasion. Even while emotions are at their peak, you shouldn’t neglect the practical aspects. Several steps should be taken to protect the family’s finances and the sooner the better. Assuming the birth takes place in a hospital, ask for a birth registration form; most hospitals distribute them to maternity patients. Check the box on the form to request a Social Security number for your baby. You’ll have to supply the parents’ Social Security numbers. If the birth doesn’t take place in a hospital, or if there is some other reason this form isn’t available, contact your local Social Security office to get the process started. Once you have the Social Security number, you’ll be on solid ground for claiming tax benefits. Those include an additional dependency exemption and perhaps the child tax credit. You’ll also be able to open savings and investment accounts in the child’s name. Notify your Employer Another key step is locking in health insurance for the newborn. If you’re covered by an employer plan, let your employer know about the baby. When both parents have employer plans, determine which one will be better, going forward. If neither parent has a health plan at work, notify your health insurance directly. There may be a 30-day window, after the birth, in which to enroll the child and avoid possible problems. Regardless of your health insurance situation, you should speak to someone at your company about adjusting your IRS Form W-4, which determines the amount that’s withheld from your paychecks for income tax. On your W-4, the more allowances you claim, the less tax you’ll have withheld. Therefore, you might add one allowance to your W-4 after the birth of a child. You’ll have more cash flow with every paycheck, money that you’ll need to meet the increasing expenses of new parenthood or expanding a family. Child Tax Credit • The Child Tax Credit can save up to $1,000 per year for each qualifying child. • To merit the credit for 2016, a child must have been 16 or younger at the end of 2016. • You must claim the credit as a dependent on your federal tax return. • To get the full $1,000 tax savings, your modified adjusted gross income must be less than $110,000 on a joint return, or $55,000 for married taxpayers filing a separate return. • For all other taxpayers, this modified adjusted gross income is $75,000. The credit phases out for taxpayers with modified adjusted gross income higher than the amount for their filing status. Partial credits are allowed with somewhat higher modified adjusted gross income. John Savignano is a partner with Savignano Accountants & Advisors located at 47-46 Vernon Blvd., Second Floor, in Long Island City. For questions, dial 718-707-0955.
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