IRS Tax Tips: Grandparents caring for grandchildren

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(KRQE) – Many grandparents who are work and raise their grandchildren could benefit from the earned income tax credit.

The EITC is a refundable tax credit, meaning those who qualify and claim the credit could pay less federal tax, pay no tax or receive a tax refund.

Qualifying grandparents are often unaware that they could claim their grandchildren for the EITC. The IRS recommends remembering these facts about the credits:

  • A grandparent who is working and has a grandchild living with them may qualify for the EITC, even if the grandparent is 65 years of age or older.
  • Generally, to be a qualified child for EITC purposes, the grandchild must meet the dependency and qualifying child requirements for EITC.
  • The rules for grandparents claiming the EITC are the same for parents claiming the EITC.
  • Special rules and restrictions apply if the child’s parents or other family members also qualify for the EITC.
  • There are also special rules for individuals receiving disability benefits and members 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.
  • The IRS recommends using the EITC Assistant, available in English or Spanish, on IRS.gov, to determine eligibility and estimate the amount of credit.
  • Eligible grandparents must file a tax return, even if they do not owe any tax or are not required to file

For more information, click here. 

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