Parents or legal guardians can go to www.CutestTaxDeduction.com and submit a photo of their newest “last-minute” tax deduction. One lucky baby, born between Dec. 1-31, 2008, will win a United States savings bond worth $5,000 (up to $10,000 upon maturity). In addition to the possible tax credits and deductions a new child may bring, who would have thought a December baby could be worth so much?
Meet Last Year’s Winner: Last year, Baby Owen won the honor of being voted America’s Cutest Last-Minute Tax Deduction. To see an update on Owen, check out the TurboTax video.
If your little tax-deduction does not qualify for the contest here are a few tips that will help you during tax season:
- Any new baby in 2008 could deliver a $1,000 child tax credit. This is a gift that keeps on giving until they turn 17.
- Be sure to file a new W-4 form with your employer to claim an additional withholding "allowance which may help boost your take-home pay.
- There's also a tax credit, worth as much $11,650 in 2008, to help offset the cost of adopting a child.