[Serena]

Tax question, debating on hiring on a CPA as well. I began working as a veterinarian last year and my salary has increased drastically to 115,000/year.

Only other tax info is health insurance and 2 mortgages.

My significant other makes about $45,000/year and we file separately. I usually file our taxes online as they’re simple.

We had a baby this month and we’re trying to decide who’s insurance to add him to as that’s who will claim him on taxes (cost of babies health insurance is very similar as his is cheap and my job will cover some so that is negligible).

Question one- is it time for paying a CPA for my taxes?

If not, who should claim the baby for the greatest return?

Thanks in advance!

[Dawn]

I would think it would be better to have the baby on the higher earner’s taxes to decrease tax liability

[Illona]

partner will most likely qualify for EITC with one child at that income level – so probably partner…

Definitely run it both ways though! Also – it doesn’t matter who’s insurance the baby is on, either of you could claim the baby – so just choose the “better” policy and you can make the decision on who claims baby in January.

[Caro]

Congrats on baby! so the only warning I am going to give you is when/if you do, I was shocked the first year that I had to pay so much more in taxes.

This is more pronounced if you have similar incomes I believe but just something to tuck away in the back of your mind (can read more about it marriage penalty tax search).

I would run both scenarios.

But I’d also look at the insurances as well are they comparable?

[Stacy]

No need to pay a CPA. Your tax return prep is simple. Run the numbers for different filing status. And be sure to contribute to an HSA and Roth IRA to reduce your tax liability.

[Author]

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