February 12, 2020
Manager Chris Cicalese, CPA, MSTFP offered timely tax season advice for new parents in the CNBC article “9 Things New Parents Need to Know Before Filing Their Taxes in 2020.” The article was also distributed on various local NBC news channels.
1. Make sure your child has social security number.
“The most important thing to keep in mind when filing as a new parent is to make sure you have a proper tax ID number,” says Chris Cicalese, a CPA with New Jersey-based Alloy Silverstein Accountants and Advisors.
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9. Update your W-4
Although changing your W-4 now won’t affect your 2019 taxes, it’s still worth taking a look for next year. A W-4 is a common form that you typically fill out when you start a new job. It allows you to select how much to withhold from your paycheck for taxes. You can claim allowances, including for kids, which will bring down the amount that’s withheld out of every paycheck.
“If your W-4 is not accurate, you could be giving the government too much money every paycheck,” Cicalese says. Keep a close eye on the size of your refund after the first year you have a child. “If you receive a significant refund, it may be time to adjust so that you take home more money each paycheck that you can utilize for raising a child.”
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