Children are not only a wonderful gift, but, fortunately, our government provides us with some nice tax benefits for having children as well. The additional $3,300 of personal exemption money, along with the $1,000 child tax credit can really make a difference in how much you pay in taxes. For 2006, Dayna and I will end up saving about $1,500 in taxes just because of Morgan. In 2007, with the new baby coming along, that number will almost double. The $1,500 we will save in taxes this year pretty much covers our out-of-pocket expenses we incurred for Morgan's birth. We'll be fortunate enough this year to receive a tax refund of approximately $2,600 in spite of the fact that we've had the minimum amount of withholding held from my paycheck.
Since we are nearing the end of the year, here are the 2006 Federal Tax Rate Schedules.
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