On death and taxes

I'm a tax person and when you are a tax person, you tend to think of everything in relation to tax. For example, when I read blogs with "sponsors" I can't help but wonder if those bloggers are reporting that income on their individual income tax returns. I am doubtful that they are receiving a Form 1099 for their services. I would be hesitant to provide my social security number to a business acquaintance I have only had dealings with over the internet.

Do you see what I mean? Tax, tax, tax.

So now let's talk about what happens when your baby is stillborn. When your baby is stillborn, you are issued a Death Certificate. And you immediately realize how ironic it is that one can be issued a death certificate but not a birth certificate? How can you die if you didn't exist?

Many states (including Massachusetts) offer a Certificate of Birth Resulting in Stillbirth. Many, many states do not and there are many, many grieving parents out there who are fighting to change that. When your baby is stillborn, you feel as if the world wants to forgot that your baby ever existed. Wouldn't it be easier for everyone else if that were the case? There wouldn't be any awkward moments. No one would have to feel bad because you feel bad.

When your baby is stillborn, you want to scream at the top of your lungs. "I HAD A BABY TOO. I CARRIED A BABY INSIDE OF ME FOR 9 MONTHS. I WAS IN LABOR FOR MORE THAN 24 HOURS. I PUSHED FOR 4 HOURS. I KNOW THE PAIN OF CHILDBIRTH. I HAD A BABY TOO."

But no one hears you.

I remember the exact moment when I thought of tax in relation to Abbey. Almost three months had passed since her death and I unknowingly was a few weeks pregnant again. It was a weekend in August and I had decided to paint the downstairs half bath. One of several projects that had not been finished prior to Abbey's birth. I painted the trim a nice, crisp white and chose a lilac color for the walls.

As I stood on the step stool painting the wall above, a thought hit me. Abbey. Dependent. Tax return. Because I view the world from a tax perspective. I dropped the paintbrush and ran upstairs to the nook that had been turned into our office. I patiently waited for the computer to fire up and then made my way to the IRS website.

In the year 2006, taxpayers were allowed a deduction of $3,300 for each dependent. What I want to clarify here is that if you had a baby on December 31st, you would still take the deduction of $3,300. If you had a baby and she lived for a day, you would still take the deduction of $3,300.

Here is a direct quote from the 2006 filing instructions: "If your dependent child was born and died in 2006 and you do not have an SSN for the child, you can attach a copy of the child's birth certificate instead and enter "Died" in column (2)."

When your baby is stillborn, you don't receive a birth certificate.

Additional research confirmed that stillborn babies do not qualify for the dependent exemption.

Now let's look at the 2010 filing instructions. "If your dependent child was born and died in 2010 and you do not have an SSN for the child, enter "Died" in column (2) and include a copy of the child's birth certificate, death certificate, or hospital records. The document must show the child was born alive."

Talk about a kick in the teeth. Thank you for visiting the Wonderful World of Motherhood. Sorry your stay was so short. We hope you can join us again!

Because you know, I didn't really have a baby. And I didn't buy a crib or a stroller or diapers or wipes or clothes or a car seat like everyone else.

Or burial plots or a coffin or a headstone.

This is not about money. I could care less about the money. I would have loved it if the government had taken that money and used it for stillbirth research. What are the chances of that happening?

A few year ago, I was reading the Arizona individual income tax return filing instructions and I came across a paragraph that caused my to catch my breath. I couldn't believe what I was reading under who you can list as a dependent.

"A stillborn child if the following apply:

1. The stillbirth occurred during 20XX.
2. You received a certificate of birth resulting in stillbirth from the Arizona Department of Health Services.
3. The child would have otherwise been a member of your household."

Thank you, Arizona!

I researched on the internet and it appears that there are a tiny handful of other states allowing a deduction or credit as well. Indiana, Missouri, Alaska and Michigan.

I found the arguments for and against the Michigan bill quite interesting so I have cut and paste them here.

For:

The bill would allow a personal exemption for a stillborn child. Proponents of this deduction say that a child born alive qualifies as an exemption even if he or she takes only a few breaths, yet the parent or parents of a stillborn child cannot claim a tax exemption. This is unjust, and the lack of recognition of the existence of the child adds to the anguish. The expense of preparing for the arrival of a stillborn child is the same as for a child born alive. The exemption, obviously, would only be claimed for the tax year in which the stillbirth occurred, so it is a one-time exemption or deduction. (The bill would make use of a form that is already required in reporting the death of a fetus that has completed at least 20 weeks of gestation.)

Against:

Is the Income Tax Act the proper place to address the tragedy of a stillbirth? Generally, state tax officials prefer changes in the tax law that will either encourage simplicity or that will provide a clear set of incentives. This bill would not accomplish either goal. Further, there may be administrative problems, in that the form used by the Department of Community Health (known as "the final disposition of a stillbirth") may not be adequate for tax purposes. (It should also be noted, for what it is worth, that the federal income tax law does not allow a deduction in the case of a stillbirth.)

It's obvious which side I am on but I do have to say that the Against arguments are a bit pathetic. That last sentence is laughable because states veer from federal laws all the time. For what it is worth, I can think of three different deductions on the Massachusetts individual income tax return that are not allowed for federal purposes. For what it is worth.

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Approximately 26,000 stillbirths occur in the United States each year. For more than half, the reasons cannot be identified.

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ETA: I don't know why the fonts are different sizes. I reset those sentences to normal but they are still publishing bigger.