having a baby.... tax deduction question

[snoozer]

We are having our first child in the next few weeks... delivery date is 12/24... I feel bad for the kid already.

The good news for us is our doctor is going on vacation on 1/1. He already told us that even if the baby is late, it will be born this year.

How significant is this tax deduction? Everyone I work with always comments about it, so I am guessing it is significant. Is there a simulator I can you to help estimate it? I could use last years turbo tax, but I have all that stuff stored in a safe box and really don't want to deal with getting it.

Any input is greatly appreciated.

 

[SixFive]

as long as that baby is born on the old year, you get the full deduction for a dependant. Hope your wife has a good delivery, and congrats!

 

[Red & Black]

You get an exemption for the child ($3,200) that is used to reduce your income. You also get a tax credit of $1,000 that is used to reduce your tax liability.