Tax Implications After Stillbirth
Those who have suffered a stillbirth understand that the emotional pain may feel overwhelming. The financial hurdles associated with stillbirth can add even more stress to a difficult time. Stillborn babies are defined as 20 weeks gestation or older. Historically, in order to claim a newborn child as a dependent, state or local law must treat the child as having been born alive, and there must be proof of a live birth shown by an official document like a birth certificate.
However, advocacy groups have worked diligently to make changes to state law. The M.I.S.S. Foundation believes that all states should record births as births — whether live or still. As a result, several states have enacted legislation providing a stillbirth tax deduction/credit for stillbirth families. This provides one-time financial relief to the stillbirth parents to help offset the unanticipated expenses of funerals, burial, testing, therapy, etc. To view your state’s law regarding stillbirth tax deduction/credit, please visit the MISS Foundation.
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