How does the birth and death of my daughter in the same year effect my ability to claim her?

[Gabriella_EA]

Hello CuriousChristy!

Thank you for joining us for the event today, and for trusting us with your tax question. I am so very sorry for your loss.

A child who was born and passed away in the same year is still eligible to be claimed as a dependent, and is potentially eligible for both the earned income credit and the child tax credit.

If your daughter did not have a social security number, you may need to mail in your return and some supporting documentation.

The IRS has a really helpful, brief resource on this topic and on what you may need for documentation here.

[mbpeddie]

Hi Christy,

First, my condolences on the loss of your daughter.

I am going to assume it was not a still birth and that your daughter was alive for part ot the year correct?

In that case, you can claim her as a dependent on your return. In addtion there may be credits you are entitled to:

1. The Earned Income Credit

Generally, a child must live with you in the United States for more than half of the tax year to be a qualifying child. You may treat a child who was born alive or died in 2022 as having lived with you for more than half of 2022 if your main home was the child’s main home (or would have been) for more than half of the time he or she was alive in 2022. Whether your child was born alive depends on state law.

The earned income credit requires that you provide a valid social security number (SSN) for your qualifying child. If you meet all of the other requirements to claim this credit, and your child was born and died in 2022 and didn't have an SSN, instead of an SSN, you may enter "DIED" on line 2 of Schedule EIC (Form 1040), Earned Income Credit and attach a copy of the child's birth certificate, death certificate, or a hospital medical record showing a live birth. Beginning with the 2021 tax year, singles and couples who have SSNs can claim the credit, even if your children don't have SSNs. In this instance, you may be eligible for the earned income credit available to childless workers.

   2. Dependency and/or Child Tax Credit  

Generally, the child must live with you for more than half of the tax year to be a qualifying child. You may treat a child who was born alive or died in 2022 as having lived with you for more than half of 2022 if your main home was (or would have been) the child's main home for more than half of the time he or she was alive in 2022. Whether your child was born alive depends on state law.

If you meet all of the other requirements to claim the child as a dependent, you usually must provide a taxpayer identifying number (TIN) for the child. If your child was born and died in 2022 and didn't have an SSN or other TIN, instead of a TIN, you may enter "DIED" in column 2 of the Dependents section of Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors and attach a copy of the child's birth certificate, death certificate, or a hospital record showing a live birth.

The child tax credit requires that you provide a valid SSN for your qualifying child. If you meet all of the other requirements to claim this credit and your child was born and died in 2022 and didn’t have an SSN, instead of an SSN, you may enter “DIED” on column 2 of the Dependents section of Form 1040 or Form 1040-SR and attach a copy of the child’s birth certificate, death certificate or a hospital record showing a live birth.

[CuriousChristy]

Thank you. She lived for 8 days after an 8 month pregnancy. We do have her Social Security Card, her birth certificate and her death acknowledgement so it sounds like we qualify for the 2 credits you mentioned. You time and condolences are much appreciated! 💜