In the United States, the government is willing to financially help you with your twins. This comes in the form of a child tax credit and deductions for your dependents.
If you already have other children, you probably know about these benefits. If not, each child you have reduces your tax obligation to the government for that tax year. In my opinion, now is the time to reap these rewards for your soon-to-be-born twins.
Well, my friend, by now it’s no news flash that two babies bring with them double the expenses. You need all the cash you can get.
If your twins are due this tax year, seriously consider adjusting your tax withholdings now so you can have the extra cash flow immediately.
Our girls were due in the month of August. As soon as January rolled around that year, I gave my employer a new W-4 form that included the fact that I’d have four children total for that tax year.
Once your employer changes your tax withholdings, you’ll be taking home more money. This is money that you’d get in the form of a tax return later had you not made the change. The bonus is that you get to use that money right now instead of giving it to Uncle Sam as an interest-free loan.
As you prepare for your twins’ arrival, you’ll need cash for everything from cribs to diapers.
Update your tax deductions now so you don’t say next year when you get your refund: “Oh, I really could have used this last year getting ready for the twins!”
Read more about this in Chapter 4 of my book, the Dad’s Guide to Twins: How to Survive the Twin Pregnancy and Prepare for Your Twins.
[Please note that I am not an accountant and my advice should be taken with a grain of salt. It worked for us but your situation may be different. When in doubt, talk to your accountant or lawyer.]
Picture by Cheryl