The Supporting Newborn Parents Act of 2026 creates a new tax credit of $2,000 for parents who have a qualifying child born during the taxable year. The credit begins applying to tax years starting after December 31, 2025, and will be adjusted annually for inflation. The credit phases out for higher-income families and is limited to 20 percent of the taxpayer's earned income for the year. Parents can claim the credit either in the year the child is born or the preceding year, depending on their preference.
The bill also allows parents to receive the credit as an advance payment within six weeks of obtaining a Social Security number for their newborn, rather than waiting until they file their tax return. When parents apply for a Social Security number for their child, they will provide information to the Social Security Administration about whether they want the advance payment and how they prefer to receive it. The Treasury Department will be required to create an online portal and provide plain-language guidance to help parents understand how their elections affect the credit amount and how reconciliation of advance payments works at tax time.
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