This is the subject of my latest Bloomberg columnhere is an exerpt :
There is indeed a pronounced “round belly” in December. The figures show that induced deliveries and deliveries by scheduled cesarean section are upper than the average towards the very end of the year.
Why? In the United States, having a child has significant tax advantages. If you are a single parent with an adjusted gross income of less than $112,500, an additional child brought you benefit from a child tax credit of $3,600 per year.
So, speaking strictly of tax implications, sure, a New Year’s Eve baby is better than a New Year’s Eve baby: You can claim that little bundle of joy as a dependent for the entire year, even if he or she was only there for a day. Other benefits could come from state-level earned income tax credit and child tax credit programs.
Some might argue that it is the parents, not the children, who benefit most from these tax breaks. Others might also wonder whether these newborns come at a cost. In fact, the study shows that these children have a lower birth weight. Further research shows that accelerated births had notable effects on children, with lower birth weights again.
The good news, however, is that these same children gained weight more quickly during later checkups. The other good news is that these children are reaching early developmental milestones at a faster rate than average. This may reflect the extra income available to parents, since higher income and other positive parental characteristics predict better developmental outcomes for children.
Don’t wait until April!
