Stillbirth Tax Credits by State: What You Can Claim and How to File

Federal Taxes: What the IRS Does and Does Not Allow

The IRS does not permit claiming a stillborn child as a dependent on your federal tax return. To qualify as a dependent, a child must be born alive — meaning a documented live birth with a standard birth certificate. A fetal death certificate or Certificate of Birth Resulting in Stillbirth does not meet the IRS definition.

This means no federal child tax credit, no dependent exemption, and no earned income tax credit for a stillborn child at the federal level.

However, you may still be able to deduct medical expenses related to the pregnancy and delivery (prenatal care, hospital bills, lab work, prescriptions) if they exceed 7.5% of your adjusted gross income. These deductions apply whether the pregnancy resulted in a live birth or not.

State-Level Tax Credits and Exemptions

Several states have enacted their own stillbirth tax credits or exemptions. These vary in amount, whether they are refundable (meaning you receive a payment even if you owe no state tax), and the documentation required.

Minnesota — $2,000 Refundable Tax Credit

The most generous and accessible option. The credit is refundable — if you owe less than $2,000 in state taxes, you receive the difference as a cash payment.

• Eligibility: Stillbirth at 20 weeks gestation or later
• Documentation: Complete Schedule M1PSC and Schedule M1REF with your Form M1 state return. You must provide the State File Number and Document Control Number from the Certificate of Birth Resulting in Stillbirth.
• Retroactive claims: The deadline for filing claims back to tax year 2016 was before January 1, 2026; that deadline has passed.
• Filing separately: Check Minnesota's current instructions to confirm which parent may claim the credit.

Connecticut — $2,500 Nonrefundable Tax Credit

• Eligibility: Stillbirth at 20 weeks gestation or later
• Documentation: Certificate of Birth Resulting in Stillbirth
• Who can claim: Parents, grandparents, or a representing attorney
• Nonrefundable: Reduces your state tax liability to zero but does not generate a refund beyond that

Arizona — $2,300 Personal Tax Exemption

• Eligibility: Stillbirth at 20 weeks gestation or later, or fetal weight of 350 grams or more
• Documentation: Certificate of Birth Resulting in Stillbirth
• How it works: Functions as an additional personal exemption, reducing your taxable income by $2,300

Wisconsin — $2,000 Nonrefundable Tax Credit

• Eligibility: Fetal death report filed under state law (20 weeks gestation or later)
• Documentation: Official fetal death report submitted with the state tax return
• Split claims: Married filing separately or unmarried parents can claim $1,000 each
• Effective date: Available for tax years starting after December 31, 2025

Nebraska — $2,000 Refundable Tax Credit

• Eligibility: Stillbirth at 20 weeks gestation or later
• Documentation: Certificate of Birth Resulting in Stillbirth issued in the tax year of the loss

Kansas — $2,320 Personal Tax Exemption

• Eligibility: Stillbirth at 20 weeks gestation or later
• Documentation: Commemorative Certificate of Stillbirth issued by the state vital records office

Arkansas — $500 Individual Income Tax Credit (Paisley's Law)

• Eligibility: Stillbirth at 20 weeks gestation or later
• Documentation: Certificate of Birth Resulting in Stillbirth

North Dakota — One-Time Income Tax Deduction

• Eligibility: Stillbirth at 20 weeks gestation or later
• Documentation: Certified copy of the Fetal Death Record from the Department of Health
• Amount: Adjusted for inflation annually

How to Get the Required Certificate

Most state tax credits require a Certificate of Birth Resulting in Stillbirth, which is separate from a fetal death certificate. Not all states issue them automatically.

Request the certificate from your state's vital records office. In most states, the hospital where the delivery occurred can initiate the request on your behalf. If the hospital did not offer this at the time of delivery, you can contact the vital records office directly — there is generally no time limit on requesting the certificate.

The certificate is not a legal birth certificate and does not confer dependent status. It is a recognition document that also serves as the required proof for state tax credits.

Filing Tips

• File your state return even if you owe no state income tax if the credit is refundable (Minnesota, Nebraska). The refundable credit will be paid to you as a cash return.
• Keep the required documentation. Before requesting copies, check each state's instructions to see which certificate and format it requires.
• Check legislative updates. Maryland has a $1,000 refundable credit pending (SB 356) for tax years starting 2027. Other states may enact similar legislation — the Star Legacy Foundation tracks pending stillbirth legislation at the state level.

The Grief During Pregnancy toolkit includes a financial chapter covering stillbirth tax credits, available funeral assistance programs, and insurance claim procedures — with the exact forms and filing steps for each state that offers relief.