Your growing family could pay off via several tax credits. The great thing about tax credits is that they reduce your tax liability on a dollar-for-dollar basis. A credit of $500 could cut your $1,000 tax bill in half. If you owe no tax, some credits even will get you a refund.

The easiest child-related credit to claim is called simply that, the child tax credit. There are no records to keep or extra forms to file in order to get a $1,000 credit for each child younger than 17 who's claimed as a dependent on your tax return.

If you claim tax relief for more than one kid, you must fill out Form 8812 to compute the additional-child tax credit, but the paperwork could well be worth it. This tax break allows filers who owe little or no taxes to get a refund check from the IRS.

Working parents who put the kids in day care can file for the child- and dependent-care credit to recoup some of those costs, up to $3,000 spent to care for one youngster under age 13 child, $6,000 for two or more preteens.

And if your child arrived via adoption, there's a tax credit for that, too.