Can I Claim My Grandchild on My Taxes?

When tax time comes around, everyone looks for ways to reduce the amount of taxes owed. If you have a grandchild you supported during the tax year, you may gain the tax advantages of claiming her as a dependent on your taxes if she is a "qualifying child."

Significance

Claiming a grandchild on your income tax return can potentially change your filing status to head of household. It can also allow you an additional exemption, a child tax credit, child dependent care credit and an earned income credit.

Basic Tests for a Qualifying Child

A grandchild passes the first test for a qualifying child as he is the descendant of your child. He must have lived with you for more than half the year and not provided more than half his own support. He must also be under the age of 19 or under 24 if a full-time student.

Exceptions and Additional Rules

If more than one taxpayer can claim the child and the other taxpayer is the parent then the parent will be allowed to claim her. If the other taxpayer is not the parent then whichever taxpayer has the higher adjusted gross income can claim her. The child must also be a citizen or national of the United States, Mexico or Canada and must not have filed a married filing jointly return.

References

• Internal Revenue Service: Qualifying Child Definition