Can You Claim a Stillborn Child on Your Taxes?

It is possible to claim a child who was born alive, even if they lived for only a brief period, on your tax return. While the term “stillborn” typically refers to a child who showed no signs of life outside the womb, the Internal Revenue Service (IRS) guidelines for claiming a dependent require that the child was born alive. If a child was born alive and then passed away within the same tax year, they may be considered a qualifying child for various tax benefits, provided specific criteria are met.

Eligibility as a Qualifying Child

For a child to be a qualifying child for tax purposes, the IRS requires that the child must have been born alive. This distinction is important because a stillborn child, defined as having no signs of life outside the womb, generally does not meet the criteria for a qualifying child under IRS regulations.

Beyond the live birth requirement, a child must satisfy four main tests to be considered a qualifying child: relationship, age, residency, and support. The relationship test means the child must be your son, daughter, stepchild, foster child, sibling, stepsibling, or a descendant of any of these. For the age test, the child must be under age 17 at the end of the tax year for the Child Tax Credit, or under 19 (or 24 if a full-time student) for general dependent purposes, unless permanently and totally disabled.

The residency test generally requires the child to have lived with you for more than half of the tax year. However, if a child was born and died within the same tax year, they are considered to have met this residency requirement if your home was their home for more than half of the time they were alive. The support test dictates that the child must not have provided more than half of their own financial support for the tax year. Meeting these criteria allows for the child to be claimed as a dependent, unlocking potential tax benefits.

Tax Benefits for a Qualifying Child

If a child meets the eligibility requirements as a qualifying child, taxpayers may be able to claim several valuable tax benefits. The Child Tax Credit (CTC) is a significant credit available for each qualifying child. For the 2024 tax year, this credit can be worth up to $2,000 per qualifying child.

A portion of the Child Tax Credit is refundable, known as the Additional Child Tax Credit (ACTC). For 2024, up to $1,700 per child may be refundable, meaning taxpayers could receive this amount as a refund even if they owe no tax. This credit begins to phase out for taxpayers with modified adjusted gross income above certain thresholds, which are $200,000 for single filers and $400,000 for those married filing jointly.

Another benefit is the Credit for Other Dependents (ODC), which can provide up to $500 for each qualifying dependent who does not qualify for the Child Tax Credit. This credit is non-refundable. Additionally, the presence of a qualifying child can influence eligibility and the amount of the Earned Income Tax Credit (EITC), a refundable credit designed for low-to moderate-income working individuals and families. The EITC has specific income thresholds and other criteria that must be met, but having a qualifying child can significantly increase the potential credit amount.

Required Documentation

To substantiate a claim for a qualifying child who was born alive and subsequently passed away, taxpayers should gather specific documentation. A birth certificate that indicates a live birth is a primary document.

A death certificate for the child is also important. This document confirms the date of the child’s passing. In situations where a birth certificate may not have been issued due to the brevity of the child’s life, hospital records or a medical statement from a physician confirming the live birth can serve as acceptable evidence. These medical records should clearly indicate signs of life at birth.

Maintaining these records with your other tax documents is advisable. The IRS may request these documents to verify the claim during a review or audit. Proper documentation helps ensure compliance with tax laws and supports the eligibility for any claimed credits or deductions.

Reporting on Your Tax Return

When reporting a qualifying child who was born alive and passed away within the same tax year, specific steps are necessary on your tax return. The child is typically listed as a dependent on Form 1040, U.S. Individual Income Tax Return. If claiming the Child Tax Credit, Schedule 8812, Credits for Qualifying Children and Other Dependents, will also be required.

A Social Security Number (SSN) is generally required for a qualifying child. However, if an SSN was not obtained for a child born and deceased in the same tax year, the IRS provides an exception: you may enter “DIED” in the SSN column on Form 1040 or Schedule EIC for the Earned Income Credit. This situation necessitates paper filing your tax return, as electronic filing is typically not possible without a valid SSN for the dependent. When paper filing, you must attach copies of the child’s birth certificate, death certificate, or hospital medical records verifying a live birth to your tax return.