This may be a somewhat morbid question but I need to know... I gave birth to identical twin girls on August 20th. They had died 24 hours before being born. We did not apply for social security cards for them since they were stillborn but we do have death certificates for them both as required by law. We also went through making final arrangements with a funeral home and had to submit obituaries and everything. Can we claim them this year on our tax return or is that not allowed since we did not get ss#'s for them?

Sorry, but no, you cannot claim an exemption for a stillborn child.

You have my condolences for your loss.

Please accept my sincerest sympanhy for your loss. I can't even imagine your heartbreak.
As per IRS Publication 501
Death or birth of child. A child who was born or died during the year is treated as having lived with you all year if your home was the child's home the entire time he or she was alive during the year. The same is true if the child lived with you all year except for any required hospital stay following birth.

Child born alive. You may be able to claim an exemption for a child who was born alive during the year, even if the child lived only for a moment. State or local law must treat the child as having been born alive. There must be proof of a live birth shown by an official document, such as a birth certificate. The child must be your qualifying child or qualifying relative, and all the other tests to claim an exemption for a dependent must be met.

Stillborn child. You cannot claim an exemption for a stillborn child.

Again, I'm so sorry for your losses. My prayers are with you and your family.