First-Time Parents Tax Credit Act

This bill creates a one-time tax credit to help people when they become parents for the first time. It offers $1,250 to an eligible new parent, or $2,500 total if two eligible new parents file a joint return. The title says it’s refundable, which means you can get the money even if you owe little or no income tax.

You can claim it only once. You qualify if you haven’t claimed this credit before and:

• You’re the parent of a child who was born or adopted during the tax year, or
• You’re a non-custodial parent of a child born or adopted in the previous year, your name is on the birth certificate, and you can’t claim the child as a dependent that year.