Kids can score you valuable credits and deductions on your tax return. By Rebecca Dolan, Contributing Writer March 16, 2017 Got a new bundle of joy in your household? Here are opportunities to cut your tax bill as you grow your family.See Also: 17 Reasons the IRS Will Audit Your Tax Return 1. Dependency Exemption Claiming your son or daughter as a dependent will shelter $4,050 of your income from tax in 2016 and 2017. 2. Child Tax Credit A new baby also delivers a $1,000 child tax credit, and this is a gift that keeps on giving every year until your dependent child turns 17. 3. Head of Household Filing Status If you're single, having a child may allow you to file as a head of household rather than using the single filing status. That would give you a bigger standard deduction and more advantageous tax brackets. 4. Adoption Credit The credit will reimburse you for up to $13,460 in expenses for a 2016 adoption. Read more about ways parents can lower their tax bills. See Also: 23 Most Overlooked Tax Deductions Show comments