A small child is a welcome in every home and he usually ends up having a lot of costs piled on him. But now, you can get a relief from his costs too. You can claim certain deductions too.

Many types of savings help you go that extra mile in keeping the smile on the baby’s face. Here is a list of the available options.

(a) Supplementary exemption called Dependency Exemption
(b) Child Tax Credit
(c) Child and Dependent Care Credit
(d) Tax deduction, by transferring revenue to the child.

(a) Dependency Exemption: necessary amount from your gross income is deducted in accordance with inflation rates.