This bill amends the Internal Revenue Code to allow the child tax credit for stillbirths, treating the unborn child as a qualifying child if they were carried for at least 20 weeks. It waives the requirement for a taxpayer identification number or social security number and applies to taxable years ending after the enactment of this act.
H. Griffith
Representative
VA-9
This bill amends the Internal Revenue Code to allow the child tax credit for stillbirths, treating the unborn child as a qualifying child if they were carried for at least 20 weeks. It enables parents of stillborn children to claim the child tax credit as if the child died immediately after birth. The bill waives the requirement for a taxpayer identification number or social security number if the child would have been eligible for one had they been born alive. This provision applies to taxable years ending after the enactment of this Act.
Stillbirth Tax Credit Bill Offers Financial Relief to Grieving Families Starting 2024
This bill changes the tax code to offer financial support to families who've experienced a stillbirth. Specifically, it allows parents to claim the child tax credit for a stillborn child, recognizing the profound loss and associated costs.
Bearing the Cost, Easing the Burden
The core change is straightforward: If a family experiences a stillbirth after at least 20 weeks of gestation, they can claim the child tax credit. The bill defines "stillbirth" as the spontaneous intrauterine fetal demise (IUFD) of an unborn child after 20 weeks. The bill treats the child, for tax purposes, as if they died immediately after delivery. This is important because it directly acknowledges the financial and emotional toll of stillbirth.
One key detail: the usual requirement for a Taxpayer Identification Number (TIN) or Social Security Number (SSN) is waived. This makes sense, as obtaining these for a stillborn child isn't possible. This provision (SEC. 1.) ensures families don't face extra bureaucratic hurdles during an already difficult time.
Real-World Impact
Imagine a family expecting a child, preparing the nursery, and incurring expenses. If they experience a stillbirth, they're not only dealing with immense grief but also the financial realities of those preparations, plus potential medical bills. This tax credit can help offset some of those costs, providing a bit of breathing room. For example, a couple who had prepared for their child's arrival and then experienced this loss could use the credit to help cover medical expenses or counseling services.
Practical Considerations
While the bill offers clear financial relief, there's a practical aspect to consider. Filing taxes is already an emotionally charged process for some, and this credit will require families to address their loss directly during tax preparation. The upside is the financial assistance; the potential downside is the emotional weight it might add during tax season.
Looking Ahead
This change applies to taxable years ending after this Act is enacted. So, if it passes in 2024, it'll be effective for the 2025 tax filing season (for the 2024 tax year). It's a direct, targeted way to provide support to families facing an incredibly difficult situation. The bill acknowledges a gap in the current system, recognizing that the financial burdens of preparing for a child don't disappear with a stillbirth.