Article III, Vol 1
Doc, can our baby be delivered at 11:59 p.m. on December 31, 2010 instead of 12:01 a.m. on January 1, 20l1? What difference does it make? Well, if the baby is born in 2011, you may get your picture and the baby's in the local newspaper - the baby could be recognized as the first born in the region for the new year.
That sounds good.
This is the flip side. If the baby is born in 2010, before midnight, and the parent or married couple income is at a certain level, the family may qualify for the following: (1). an additional dependent, (2) $1,000 child tax credit (credit is cash, not a deduction), and (3) possibly an additional $3,000 in earned income credit ( real money). Then, when the State taxes are considered, the parent(s) could possibly be receiving a greater tax savings.
Come December 31st, a lot of doctors and their staff will be waiting until the clock strikes midnight and racing to see who can be the first to deliver a baby in the new year.
In a virtual conversation recently, a father told me he wanted the doctor to move a little faster in the deliver process and deliver their new born on December 31 in 2009 - instead the doctor waited until one minute past midnight to deliver the baby.
The father said that when the clock hand struck midnight and the baby had not been delivered, "all he could do was cry, cry, cry". Of course, he was happy for the new baby, but he was crying because the baby did not arrive 2 minutes earlier, which would have been before midnight.
Here is a little insight according to IRS's tax guidelines for 2009: A qualified head of household, with income of $16,500 could possibly qualify for over $3,000 in Earned Income Credit with one child and over $5600 with three dependent children.
Also, a married couple, filing jointly, with a combined income of $21,500, if determined qualified, received over $3,000 for one child and more than $5,600 with three, qualified, dependent children.
Now, I'm not in the new baby delivery business. It is a joy whatever time the baby or babies arrives. That being said, I wonder, how many persons are willing to ask the doctor if the delivery could be in 2010, if possible, without any complications.? Then again, in many cases, it may not really matter.
Another thing to consider in the delivery process, is insurance. The year of deliver could determine how much out of pocket expenses the parent or parents have to pay. But that is another story.
In conclusion, what a difference a minute can make. Perhaps, in some cases up to $5,000 in real money in tax refund or savings!
Disclaimer: This blog is for information purposes only. It is not intended to be a basis for anybody to form an opinion about medical, tax, or any other life matters. I suggest that readers consult a medical professional, accountant, or a legal advisor before acting on any information presented in this blog. All information contained in this blog is subject to be updated, modified, or amended at any time.
Grady E. Bryant, Sr.
Copyright 2010 Grady E. Bryant, Sr. All Rights Reserved.
Doc, can our baby be delivered at 11:59 p.m. on December 31, 2010 instead of 12:01 a.m. on January 1, 20l1? What difference does it make? Well, if the baby is born in 2011, you may get your picture and the baby's in the local newspaper - the baby could be recognized as the first born in the region for the new year.
That sounds good.
This is the flip side. If the baby is born in 2010, before midnight, and the parent or married couple income is at a certain level, the family may qualify for the following: (1). an additional dependent, (2) $1,000 child tax credit (credit is cash, not a deduction), and (3) possibly an additional $3,000 in earned income credit ( real money). Then, when the State taxes are considered, the parent(s) could possibly be receiving a greater tax savings.
Come December 31st, a lot of doctors and their staff will be waiting until the clock strikes midnight and racing to see who can be the first to deliver a baby in the new year.
In a virtual conversation recently, a father told me he wanted the doctor to move a little faster in the deliver process and deliver their new born on December 31 in 2009 - instead the doctor waited until one minute past midnight to deliver the baby.
The father said that when the clock hand struck midnight and the baby had not been delivered, "all he could do was cry, cry, cry". Of course, he was happy for the new baby, but he was crying because the baby did not arrive 2 minutes earlier, which would have been before midnight.
Here is a little insight according to IRS's tax guidelines for 2009: A qualified head of household, with income of $16,500 could possibly qualify for over $3,000 in Earned Income Credit with one child and over $5600 with three dependent children.
Also, a married couple, filing jointly, with a combined income of $21,500, if determined qualified, received over $3,000 for one child and more than $5,600 with three, qualified, dependent children.
Now, I'm not in the new baby delivery business. It is a joy whatever time the baby or babies arrives. That being said, I wonder, how many persons are willing to ask the doctor if the delivery could be in 2010, if possible, without any complications.? Then again, in many cases, it may not really matter.
Another thing to consider in the delivery process, is insurance. The year of deliver could determine how much out of pocket expenses the parent or parents have to pay. But that is another story.
In conclusion, what a difference a minute can make. Perhaps, in some cases up to $5,000 in real money in tax refund or savings!
Disclaimer: This blog is for information purposes only. It is not intended to be a basis for anybody to form an opinion about medical, tax, or any other life matters. I suggest that readers consult a medical professional, accountant, or a legal advisor before acting on any information presented in this blog. All information contained in this blog is subject to be updated, modified, or amended at any time.
Grady E. Bryant, Sr.
Copyright 2010 Grady E. Bryant, Sr. All Rights Reserved.
No comments:
Post a Comment