Expecting a child this year?

This means you're in a position to keep more of your paycheck now. You'll be entitled to a full dependency exemption for this new child (the exemption is not prorated), which will cut your taxes for the year. Best strategy: Instead of waiting until you file your return to see this savings, get the benefit now by increasing your withholding allowances so less income tax is withheld from your pay. Just file a new Form W-4 with your employer (not with the IRS).