Disclaimer: The information below is not legal or medical advice. The author of this resource article is a degreed accountant with personal experience with these situations. They are not a CPA or a tax professional. Always consult a tax professional and employer benefits specialist for guidance specific to your situation.

Taxes

If your baby was born alive (has a birth certificate) you may be able to claim them on your taxes, regardless of how long they lived. You may also be eligible for the Child Tax Credit for that year.

• Example: If your baby was born on December 25 and lived until January 3 of the following year, you could claim them as a dependent for both tax years.
• Important: For subsequent years, you cannot claim your baby as a dependent, so remember to remove them from future tax returns. Do not try and claim them on additional tax returns beyond the year that your baby died - this is considered tax fraud.
• Here is a helpful section in the IRS frequently asked questions

Social Security Number or ITIN:

• You will need your baby’s Social Security number to file your taxes if you are going to claim them as a dependant, which usually takes a few weeks to arrive in the mail.
• If you did not apply for a Social Security Number for your baby, you may still be able to get an "ITIN" by submitting their birth certificate via form W-7. Just make sure you apply for the ITIN with plenty of time to spare before tax day because it can take time.

It's always a smart idea to get identify theft protection if your baby has a SSN or ITIN to ensure you are alerted if it leaks online or on the dark web & is used improperly.

Insurance

Insurance can be critical if your baby was born with major medical issues or required a NICU stay.

Adding Your Baby to Insurance

• If you have employer-based insurance and your baby incurred significant medical bills, it is recommended to add them to your medical plan.
• Typically, this must be done within 30 days of birth. It does not matter if your plan is a family plan or employee + dependent plan—choose the coverage that fits your situation.
• After your baby passes, you can remove them from the plan in the following month, as their future bills will no longer need coverage.
• Be aware that some medical bills may arrive months or years later, but they should be processed under the insurance plan while your baby was covered.

Note: You usually do not need to add your baby to dental or vision plans, unless there are specific medical bills under those plans.

Example: Gemma was born on 11/4/21 and passed on 11/6/21.

1. She was added to her mom’s employee + dependent plan the week after birth. This covered all NICU bills starting 11/4/21.
2. All other hospital bills were filed under her mom’s insurance.
3. On 12/1/21, her mom notified her employer of Gemma’s death and provided the death certificate. Gemma was then removed from the insurance plan effective December.
4. Result: Premiums were only paid for November (~$100), but over $50,000 in medical bills were covered that otherwise would have been out-of-pocket.

Miscarriage or Stillbirth

• If your baby was stillborn, there are no medical bills under their name, so insurance changes are generally not needed.
• It is not uncommon for people to receive a medical bill with their stillborn baby's name attached to the bill. Occasionally, this bill will be sent directly to collections because the hospital's system is not built for these situations where medical charges are associated with an infant who has no official patient record (thus, no "Patient ID number"). While this is alarming to recieve, it's usually very simple to resolve the situation: call the hospital/provider/business's and explain that you received a bill in the name of your stillborn baby. Since they have no Patient ID number and no birth certificate, all those charges should be changed so that they are coded under the mother's name. Then, the company will need to submit that bill to the mother's insurance provider.
• Babies born after 20 weeks gestation or stillborn may still qualify for maternity leave and count as a qualifying life event, which could allow changes to insurance plans, STD/LTD coverage, or payroll deductions.
• Example: You may need more time off, or wish to switch from an HSA plan to a PPO plan for lower deductibles if you anticipate higher medical expenses.

Important Considerations:

• What counts as a live birth or “point of viability” varies by state law and hospital policy.
• Always confirm with your hospital, insurance provider, and HR department to ensure coverage and benefits are handled correctly.