Everything You Need To Know About the Unborn Child Tax Credit

When it comes to tax, there's almost no escape. And dealing with taxes when you’re already experiencing financial difficulties can only increase your burden. The good news is that you can take advantage of tax deductions and credits. If you’ve been watching for tax-saving opportunities, you may be wondering whether you can claim an unborn child on your taxes.

The high cost of everything has households trying to find hidden tax-saving opportunities. The IRS allows certain expenses to be deducted from your taxable income, lowering your tax bill, and offers a variety of tax credits that directly reduce your tax bill.

For example, if you owe $1,000 in taxes and you’ve got $800 in credit, your effective tax would drop to only $200. The child tax credit, claimed on behalf of dependents, helps families offset the cost of raising children. As part of the COVID-19 economic stimulus package, the child tax credit increased to as much as $3,600 from $2,000.

The IRS only allows you to claim child tax credits after birth. You may claim the credit for a baby born during the current tax year, even if the birth was late in the year. Moreover, a baby who was born but lived only for a few minutes may be eligible for the child tax credit.

Parents can also claim the earned income credit for financial relief regarding taxes. For a child to be claimed for tax credits, they need to have a social security number. Where the custody is split, tax credits may be claimed differently.

There are efforts in Congress to extend the child tax credit to unborn babies. A group of lawmakers introduced a bill, the Child Tax Credit for Pregnant Moms Act of 2022, that seeks to expand the existing child tax structure. The backers of the bill say it may reduce the number of kids born into poverty.

A major argument for the unborn child tax credit is that families begin to prepare for a coming baby long before birth, incurring costs while stocking up on supplies such as diapers and baby formula.

The child tax credit for pregnant moms would allow families to claim the child tax credit in the year before the baby is born, and even for stillbirths or miscarriages. Therefore, if you were pregnant in 2022 and delivered in the early months of 2023, you’d be able to claim the child tax credit on your 2022 tax return. However, you’ll need to have the child’s social security number before the tax deadline. The normal IRS tax filing deadline is around mid-April.