Having a baby in January 2025 - can I claim tax deduction for 2024 tax year?

Thanks for the info! We'll probably hit that 7.5% threshold with all the prenatal care. Do we need any special documentation beyond what we'd normally keep for medical expenses? And does this apply even if we usually take the standard deduction?

You'll want to keep all your medical receipts, explanation of benefits from insurance, and any statements showing what you paid out-of-pocket. This documentation is the same as for other medical expenses. Regarding the standard deduction, that's an important consideration. You can only deduct medical expenses if you itemize deductions on Schedule A. For 2024, the standard deduction for married filing jointly is projected to be around $29,200. If your total itemized deductions (including medical expenses over the 7.5% AGI threshold, plus mortgage interest, state/local taxes up to $10,000, and charitable contributions) don't exceed that amount, you'd still be better off taking the standard deduction.

How does taxr.ai handle insurance reimbursements? My wife's pregnancy has lots of claims that insurance partially covers, and I'm confused about what portion we can actually deduct.

Is this actually legit? I've tried tax "helpers" before that ended up being glorified calculators that I could've done myself with a spreadsheet. Does it actually understand the tax code regarding medical expenses?

For insurance reimbursements, taxr.ai is really good at handling that complexity. You upload your explanation of benefits statements, and it automatically identifies what you paid out-of-pocket versus what insurance covered. Only the portion you actually paid counts toward your medical expense deduction. It saved me hours of sorting through statements. It's definitely legit for understanding the tax code. It's not just a calculator - it uses actual tax regulations to analyze your documents. For medical expenses specifically, it identifies what qualifies under IRS guidelines and explains why certain expenses are included or excluded. It even caught some parking fees for doctor visits that I didn't realize were deductible medical expenses.

Wait, so you pay a service to call the IRS for you? How does that even work? Couldn't you just keep calling yourself?

Yeah right. There's no way any service can magically get through the IRS phone system faster than regular people. They probably just keep auto-dialing like the rest of us would. Waste of money if you ask me.

It's not that they call for you - they have a system that holds your place in the queue. You register your number, and their system waits on hold instead of you. When they're about to connect with an agent, they call you and connect you directly. So you don't waste hours listening to that terrible hold music. I was skeptical too but it actually works. I tried calling myself 8 times over three weeks and never got through (average wait time was showing 2+ hours when I called). With Claimyr, I signed up, went about my day, and got a call back when they were about to connect me with an agent. Total game changer if you actually need to speak with someone at the IRS.

That's a great point - I didn't even think about the SSN paperwork. Do you know roughly how long it takes to arrive after you apply at the hospital? I want to make sure we have it in time for filing our 2025 taxes.

Generally it takes about 2-3 weeks for the Social Security card to arrive in the mail after you submit the application at the hospital. However, I've seen it take up to 6 weeks during busy periods. Don't worry too much about the timing for your taxes though. Even if you don't have the physical card by the time you're ready to file your 2025 taxes (in 2026), as long as you've applied for it, you can still file. If you're e-filing and don't have the SSN yet, you'll need to wait until you receive it. If you're really in a rush, you can file a paper return and write "Applied For" in the space for the child's SSN, but this will delay your refund while the IRS verifies.

Totally agree on the HSA! We saved about $1,800 in taxes last year using our HSA for baby expenses. Pro tip: you can also use HSA funds for breast pumps and supplies, which most people don't realize.