Don’t Leave Money on the Table—Here’s What Every Parent Needs to Know
Becoming a parent comes with countless emotional and logistical decisions—but what many new and expecting parents overlook is how much financial support they may be eligible for. From child tax credits and dependent care FSAs to employer-sponsored benefits, there are several hidden (and underused) programs that can put real money back in your pocket.
In this post, we break down the most commonly missed parental benefits—and how to make sure you’re maximizing every one of them.
1. The Child Tax Credit (CTC)
The Child Tax Credit is one of the most powerful tools to reduce your tax bill. As of 2025, eligible parents can claim up to $2,000 per qualifying child under the age of 17.
How to Qualify:
- Your child must have a valid Social Security number.
- Your income must fall within the phase-out limits (typically below $400,000 for joint filers).
- You must have provided more than half of the child’s support for the year.
Pro Tip: If your income is too low to owe federal income tax, you may still qualify for a partial refund under the Additional Child Tax Credit.
2. Dependent Care FSA (Flexible Spending Account)
If your employer offers a Dependent Care FSA, you can contribute pre-tax dollars to pay for childcare expenses. In 2025, you can contribute up to $5,000 per household ($2,500 if married filing separately).
What’s Covered:
- Daycare centers and in-home babysitters
- Preschool tuition
- Before- and after-school programs
- Summer day camps (not overnight)
Why It Matters: These funds are not subject to income or payroll taxes—saving you 20–30% on childcare costs depending on your tax bracket.
3. Employer-Sponsored Benefits
Many employers now offer additional perks for new and expecting parents—but you have to know what to ask for. These often go underutilized due to poor visibility or HR silence.
Look for:
- Paid Parental Leave Programs beyond the legal minimum
- Lactation Support and breast pump reimbursements
- Backup Childcare Services or partnerships with childcare networks
- Wellness or Lifestyle Stipends that can apply to family-related expenses
Action Step: Contact HR before your parental leave begins and ask for a breakdown of all parent-specific benefits—many are not listed publicly.
4. Less-Known Tax Breaks and Credits
Beyond the major federal programs, here are a few others parents often overlook:
- Child and Dependent Care Tax Credit (CDCTC): If you don’t use an FSA, this credit helps offset childcare costs.
- Earned Income Tax Credit (EITC): Especially relevant for lower-income families.
- Adoption Credit: If you’re adopting, don’t miss this valuable federal credit (up to ~$15,000).
Final Thoughts: Review, Ask, Plan
You don’t need to be a financial expert to take advantage of these benefits—but you do need to be proactive. Many families lose out on thousands each year simply by not asking the right questions or failing to plan in advance.
Exhale Parent is here to help you cut through the complexity, understand your options, and make decisions that work for your family’s future.
