New babies and tax breaks

[moneysense]

Babies that are born before midnight on December 31st of 2008 can save their parents thousands of dollars on their 2008 tax returns.

Babies born before midnight December 31st 2008 can provide their parents with a retroactive tax exemption for the entire year.

In addition to a $3,500 exemption in 2008, the Child Tax credit is worth up to $1,000. Plus To qualify, parents must have earned at least $8,500 during the year.

Another exemption for these babies is The Earned Income Tax Credit for lower income workers. The amount of this credit depends on how much income, the number of qualifying children, and whether a single or joint return is filed.