By Maureen Renzi, Vice President - Communications

Being a parent is not for the faint of heart. The moment your child comes into the world, that little face steals your heart. Along with that immeasurable joy comes responsibility for his or her well-being. So many changes come into your life. In the tax world, having a child is definitely a significant change that could affect your tax status for more than 20 years.

Tax rule No. 1 for parents is to notify your CPA of your expanded family or note it in your tax preparation software. After that, there are too many rules to count, but here’s a quick summary of some immediate things to think about, as well as some long-range planning tips to consider when it comes to finances and taxes.

Tax Benefits from Birth

• Nine Deductions Taxpayers Can Take, Even if They Don’t Itemize
• How Does Having Children Affect My Taxes?
• Manage Your Day Care Costs, Maximize Your Deductions
• Tips for 2015 Taxes: Child- and Education-Related Tax Breaks

The Big Bill: Planning for College

College costs have consistently risen higher than inflation for the last several years, and student debt is becoming a major issue for recent grads. To help plan for this major expense, here are a few resources to provide tax tips and planning ideas.

• Savings Plans to Take Some Sting Out of College Expense
• Is the Cost of Education Mortgaging Our Future?
• Can Parents Claim Tuition Expenses Under the Lifetime Learning Credit?
• Get Yourself Financially Prepared for College
• Financing a Return to College
• Tax Credits that Can Help Lower College Costs
  
• Best Plan for College Savings Is an Early Start

Prioritizing Savings Goals

While children are a top priority, taking care of their financial future is not the only concern. Parents need to balance between what their children need and what they will need as they grow older. Here’s a few more resources to help prioritize your savings goals.

• Should I Save for Retirement or My Child's Education?
• Does It Make More Sense to Borrow for College Against Retirement Accounts or Take Out a Student Loan for a Child’s Education?
• In Trusts Should You Trust?

Credits and deductions for parents is just a small piece of the tax puzzle. Here are the top 10 things CPAs recommend to help tame your taxes, and there’s even more information on our Tax Help page. If you are beginning to feel overwhelmed and want to turn your tax return over to a professional who will not only help you with your taxes, but also develop a financial plan to meet your overall goals, use PICPA’s CPA Locator to find a CPA in your area.