New Georgia Tax Guidance to Allow Embryos as Tax Dependents

A new Georgia tax guidance, which has taken effect Wednesday, July 20, 2022, will allow parents to file a tax dependent claim of up to $3,000 for the embryo in the mother's womb.

The Georgia Department of Revenue announced the new rule that recognizes an unborn child with a detectible heartbeat as a tax dependent. Essentially, this means that the parents may file the tax claim as early as the sixth week of pregnancy and they could be asked to present medical records and other supporting documents.

The new rule also ascribes to the state's abortion law amendments, under HB 481, that describe the embryo with a detectable heartbeat as a "natural person" thus it will be illegal to terminate the pregnancy. If the parents are expecting twins or multiples, their claim would be counted as per embryo.

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Is this an anti-abortion legislation?

Richard Auxier of the Urban-Brookings Tax Policy Center told CNBC that the new guidance is anti-abortion legislation that has no real benefits to low-income families. He said that the claims to be filed are tax deductions and not tax credits. He added that tax deductions fall under an itemized and intricate process.

Howard L Markowitz, a Certified Public Accountant, said that tax deductions are a "tax person's nightmare" and the new guidance is raising more questions. For instance, unmarried parents, who don't live in the same house while the mother is already pregnant, may have to make a decision on who shall file for the claim. The new rule also does not have a detailed process on what happens to the claim if the pregnancy ends up in a miscarriage.

The state's requirement to provide supporting documentation, such as medical records, may also pose some problems as low-income families do not have the resources to take a time off and schedule an appointment with their primary care doctor.

Legal experts, on the other hand, wonder if the guidance is aimed at making Georgia a "healthcare surveillance state." Potentially, if a fetus becomes a dependent, but then the mother miscarries, she could be investigated both for illegal abortion and tax fraud.

Julia Kaye of the Reproductive Freedom Project said that the new laws will force Georgia moms to have babies, sometimes against their will, but this could lead to life-altering consequences.

Michigan House approves child tax credit for unborn children

Meanwhile, members of the Michigan House approved legislation proposing a $200 child tax credit for unborn children above the 12th-week gestation. According to ABC 12, expectant moms will need to submit a doctor's note confirming the pregnancy to avail of the claim. However, if a mom or dad has filed the pregnancy credit then they can no longer file for a tax deduction within the same tax year.

Legislators said that this bill is "taxpayer-friendly" and will help struggling families offset the cost of a new baby. The bill has been transmitted to the Senate, after which, the lawmakers will submit this to Gov. Gretchen Whitmer for her approval or veto.

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