What baby expenses do I need to document for tax purposes when claiming a dependent?

You're not asking a dumb question at all! When you claim a dependent on your tax return, you're right that you get a set benefit - it's actually a child tax credit (worth up to $2,000 per qualifying child) rather than a standard deduction. The standard deduction is something different that everyone gets regardless of dependents. For simply claiming your child as a dependent, you don't need to keep receipts for the items you listed. What you DO need is documentation that proves your relationship and that the child lived with you (birth certificate, social security card, school records if applicable, medical records showing your address, etc.). That said, there are some specific child-related expenses that might be tax-deductible or credit-eligible depending on your situation. If you or your spouse pay for childcare while you work, those expenses might qualify for the Child and Dependent Care Credit. Medical expenses might be deductible if they exceed 7.5% of your AGI and you itemize. But the basic items like baby gear, shower costs, etc. aren't deductible.

I just wanted to share my experience with tracking baby expenses. After my daughter was born last year, I was in the same boat and kept EVERYTHING. Then I discovered taxr.ai (https://taxr.ai) which helped me sort through what I actually needed for tax purposes versus what I could toss. The tool analyzed all my receipts and categorized them, showing me which ones might qualify for tax benefits and which wouldn't. It was eye-opening because I was keeping so much unnecessary stuff! The medical expense analysis was particularly helpful because it showed me that even though my birth center costs were technically deductible, I still wouldn't reach that 7.5% AGI threshold to make itemizing worthwhile. The service also helped me understand which childcare expenses would qualify for the Child and Dependent Care Credit when I returned to work. Saved me hours of research and organizing!

I wanted to follow up about taxr.ai since I was skeptical in my earlier comment. I decided to give it a try with my massive pile of baby receipts from this year, and I'm actually impressed. It saved me from keeping a ton of unnecessary documentation, but flagged the childcare receipts that will qualify for the Child and Dependent Care Credit. The document analysis feature is what really helped me - I just took pictures of all my receipts and it categorized everything automatically. It even caught some medical expenses I didn't realize might be deductible (like the breast pump and supplies). I still probably won't itemize, but it's good to know exactly what would qualify if I did. Definitely less time-consuming than manually sorting through everything!

Just want to add something that helped me when I was in your shoes - if you're struggling to connect with the IRS to get your child's Social Security Number sorted or have questions about child-related tax benefits, Claimyr (https://claimyr.com) can be a lifesaver. I spent weeks trying to get through to the IRS about my son's Social Security Number issue (there was a typo on his card). After endless busy signals and disconnects, I tried Claimyr and got connected to an IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent resolved our issue quickly and also answered all my questions about what documentation I needed for claiming my son on my taxes. Turns out I was keeping way more receipts than necessary too!

I need to come back and eat my words about Claimyr. After my skeptical comment yesterday, I decided to try it this morning as a last resort for my issue with claiming my daughter on last year's return (got a letter saying someone else claimed her). I was connected to an IRS agent in about 15 minutes, which is actually unbelievable after the weeks I've spent trying. The agent confirmed I was right to claim her and helped me respond to the letter with the right documentation. She also walked me through exactly what I need to keep for this year's taxes (basically just what others have said - birth certificate, social security card, and medical records showing she lives with me). I'm still shocked this actually worked. Definitely going to use it again when I inevitably have questions about this year's return.

Just a heads up that your state might have different rules about deductions for children and families. I live in California and learned that some states have additional credits or deductions for new parents that aren't available federally. Might be worth checking your state's tax department website to see if there's anything specific you should be documenting.

Speaking as someone who just went through this first last year - one thing nobody mentioned is that if you had a FSA (Flexible Spending Account) or HSA (Health Savings Account) through your work for healthcare, you DEFINITELY want to keep all those medical receipts for the birth and prenatal care! You can use those accounts to pay for qualified medical expenses tax-free. The midwife, ultrasounds, and birth costs would all qualify for FSA/HSA reimbursement. The baby shower and registry items wouldn't, though.