How Do I Get the Stillbirth Tax Credit?

A stillbirth tax credit is a provision offered at the state level to provide financial relief and official acknowledgment for parents. There is no federal tax credit for stillbirth; the availability and rules for this credit are determined by individual states. These state-level credits or deductions are designed to help offset some of the unexpected costs that families may face, such as funeral expenses or medical bills.

State-Specific Availability of the Credit

Several states have enacted legislation to provide a tax credit or deduction for parents who experience a stillbirth. These provisions vary by state, particularly in the monetary value of the credit.

The following states currently offer a stillbirth tax credit or deduction:

• Arizona provides a deduction of $2,300.
• Arkansas offers a nonrefundable credit.
• Connecticut allows for a $2,500 credit against income tax liability.
• Louisiana has established a $2,000 income tax credit.
• Michigan allows families to claim a child deduction.
• Minnesota offers a refundable credit of $2,000.
• Missouri provides a nonrefundable tax credit of $1,200.
• Nebraska provides a $2,000 refundable tax credit.
• North Dakota allows for a one-time deduction that is adjusted annually for inflation.
• Virginia offers a refundable tax credit of $2,000.

States without a state income tax, such as Florida, Nevada, and Texas, do not offer this type of credit. Because laws can change, you should always check for the most current information with your state’s department of revenue or a tax professional.

Determining Your Eligibility

To claim a stillbirth tax credit, you must meet specific eligibility criteria. A stillbirth is defined as the delivery of a fetus with no signs of life after a specific gestational age, most commonly 20 weeks. Some states may also have a weight requirement, such as 350 grams, if the gestational age is unknown.

The credit is intended for the parent or parents of the stillborn child. You must be a resident of the state offering the credit during the tax year in which the stillbirth occurred. The credit can only be claimed for the tax year in which the stillbirth happened.

A final requirement is that the child would have been your dependent for tax purposes if they had been born alive. This means the child would have lived with you and you would have provided more than half of their support. Only one tax credit can be claimed per stillborn child, and the parties must decide who will claim it.

Required Documentation and Information

The primary documentation you will need to claim a stillbirth tax credit is a state-issued “Certificate of Birth Resulting in Stillbirth” or a “Certificate of Fetal Death.” This document serves as the official proof required by the state tax agency.

To obtain this certificate, you will need to apply through your state or county’s office of vital records or department of health. The process involves completing an application form, providing proof of your identity, and paying a fee, which can range from $15 to $25. You can then request a certified copy from the vital records office.

When preparing to file your taxes, you will need the State File Number and a Document Control Number, which are unique identifiers printed on the certificate. You will also need the date of the stillbirth. Gathering this document and its information before you begin your tax return is recommended.

How to Claim the Credit on Your State Tax Return

After confirming your eligibility and obtaining the necessary certificate, the final step is to claim the credit on your state income tax return. You will need to locate the specific form or schedule related to the stillbirth tax credit, which is often found in the credits section of the state tax return.

Some states have a dedicated form, such as Minnesota’s Schedule M1PSC, Credit for Parents of Stillborn Children. On this form, you will enter information from your certificate, such as the file number. The credit amount is then transferred to the main state tax form, where it reduces your overall tax liability.

You must attach a copy of the Certificate of Birth Resulting in Stillbirth to your return. If you are filing a paper return, include a physical photocopy with your mailed documents. If you are filing electronically, the tax software will prompt you to upload a digital copy of the certificate. After filing, the credit will be applied, either lowering the amount of state tax you owe or resulting in a larger refund.