U.S. Rep. David Schweikert (R-AZ) introduced a bill that would provide a one-time tax deduction for families in the first year of a newborn’s life.
Under his Family Growth and Investment Act, families of newborns would get a one-time tax deduction of up to $5,000 for non-medical expenses that are essential and costly during a newborn’s first year of life. This includes items like bottles, diapers, baby formula, cribs, strollers, and car seats. The deduction is on a per-qualifying child basis, increasing to $10,000 for twins, $15,000 for triplets, etc. The income limit is $100,000 for single filers and $200,000 for joint filers.
“For many parents, the annual costs of the first years of a child’s life can be daunting regardless of how they raise their family. Already, CBO is projecting that by 2042, there will be more deaths than births in the United States. This pro-family legislation will make it easier for Arizonans and Americans everywhere to enjoy one of life’s greatest gifts,” Schweikert said.
Families spend roughly $13,000 per child annually and will spend over $233,000 for food, shelter, and other necessities to raise a child through the age of 18. This legislation seeks to ease that burden, giving parents a boost during one of the most stressful and financially challenging years of their lives.