#Baby checklist for new parents update

Additionally, the income limit above which the tax credit begins to phase out was also increased from $75,000 to $200,000 for individuals and from $110,000 to $400,000 for joint filers, making the CTC applicable to more families. Under the new law, the CTC has been doubled from $1,000 to $2,000 per child, providing a terrific opportunity for parents to save money. Most importantly, the new law gets rid of the dependent exemption but retains the concept of a dependent in order for parents to claim the Child Tax Credit (CTC) and other child-related tax benefits. The new Tax Cuts and Jobs Act (TCJA) that was signed into law by President Trump will affect new parents in many ways.

#Baby checklist for new parents update

Update your tax forms to claim child tax breaks

Because the amount of recommended coverage varies by many factors, life insurance calculators can help you determine the appropriate coverage for your family and purchase a policy accordingly.Ĥ. For young and healthy adults, term life policies can cost less than many music or video streaming services per month, providing the financial protection your family needs in case an unexpected tragedy were to occur.

What many people don’t realize is how affordable life insurance-specifically, term life insurance-can be. Like other forms of insurance, in exchange for a monthly premium, life insurance is designed to financially protect you and your family against worst-case scenarios. If you’re at a point in your life where a spouse, child, or other family member relies on you financially, then the answer is simple: it definitely is. After all, we all plan to be around for many years.

When many new parents learn they should buy life insurance, it’s common to question whether or not it’s really worth it. The money in your HSA account can be used for a wide variety of health-related products and treatments, including doctor’s fees, infant formula, breast pumps, and even baby sunscreen. Most people, however, don't actually max these out, but you should consider it, especially with the increased health and wellness expenses that come with a newborn. If you are a member of a qualifying employer-sponsored health plan, HSA contributions-which have an annual limit of $6,850 for families in 2018-can be taken out of each paycheck. Most importantly, any money you contribute and don’t use in a given year will roll over to the next year and continue to grow tax-free in the account. HSAs, or health savings accounts, are an often underappreciated pre-tax benefit that can be used to pay for a variety of current and future healthcare expenses for you and your family. If done in that time frame, your child should be covered retroactively-meaning anything that would typically be covered under that policy that occurs between birth and enrollment would be covered. Most plans typically require that your child is added within 30 or 60 days post delivery. Fortunately, however, having a baby is what’s known as a qualifying life event, which allows for an enrollment period during which you can make changes to your health policy or enroll in a new one altogether. After all, the provider should be aware that you had a baby. It’s not unreasonable to think that your health insurance provider might contact you, or better yet, automatically add your newborn to your health plan. Add your child to your health insurance plan Making the necessary financial arrangements now will minimize stress down the road and allow you to spend the most time loving and caring for your newborn.ġ. Whether you are expecting or are currently adjusting to your new life as a parent, consider this checklist as a starting point for adapting to your new financial reality. To help new parents prepare for and navigate these changes, online life insurance agency Haven Life created a checklist of financial to-dos for 2018.