The child tax credit reduces your federal tax liability by $2,000 per qualifying child, meaning more take-home pay or a larger refund.
Dependents also reduce your taxable income through the standard deduction increase ($2,000 per dependent for non-child dependents in some cases).
Many parents leave money on the table by not updating their W-4 after children are born. Adjust your withholding to claim credits throughout the year.
Eligible dependents under 17, adult dependents, and other qualifying relatives can provide tax benefits—verify eligibility and update your W-4.