Possible Tax Credit for Grandparents Caring for Grandchildren

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randparents who work and are the primary caretakers of their grandchildren may benefit from the refundable earned income tax credit (EITC). Those who qualify and claim the credit could pay less federal tax, pay no tax, or get a tax refund.

Generally, to be a qualified child for EITC purposes, the grandchild must
meet the dependency and qualifying child requirements for EITC. Special rules and restrictions apply if the child’s parents or other family members also qualify for the EITC, if an individual receives disability benefits, or is a member of the military.

To qualify for the EITC, the grandparent must have earned income either from a job or self-employment and meet basic rules. Eligible grandparents must file a tax return, even if they don’t owe any tax or aren’t required to file.

The government recommends reading Publication 596 on Earned Income Tax
Credit and using the EITC Assistant available at www.IRS.gov

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