That’s the subject of my latest Bloomberg column, here’s a little:
There is actually something called a “baby bump” in December. The numbers show that deliveries received on the ground and planned deliveries for the Caesars section are higher than average for the end of the year.
Why? In the US, there are significant tax benefits to having a child. If you are a single parent with an adjusted gross income of less than $112,500, an additional child nets you a child tax credit of $3,600 per year.
So – we’re talking strictly about tax consequences, of course – a pre-New Year’s baby is better than a New Year’s baby: You can claim that bundle of joy as a dependent throughout the year, even though it was only there for one day. it. However, additional benefits can come from state-level earned income tax credits and child tax credit programs.
You might argue that parents, not children, benefit most from these tax benefits. You may also ask if there are any costs for these newborns. In fact, research shows that these babies have low birth weight. Some studies show that early births had a noticeable effect on babies, with lower birth weights being found.
The good news, however, is that those same children had accelerated weight gain during subsequent tests. The other good news is that those children reach developmental milestones faster than average. That may reflect more money that parents have, as higher income and other positive parental characteristics predict better developmental outcomes for children.
Don’t wait until April!
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