We all love our grandparents, even the IRS. If you are a grandparent who works and who is also raising your grandchildren, you might benefit from the earned income tax credit (EITC).
Many grandparents who care for children are not aware that they can claim these children for the tax credit. This credit is refundable, which means that if you qualify, you could pay less federal tax, pay no tax, or even get a tax refund.
If you are a grandparent who is the primary caretaker of your grandchildren, you should discover these facts about the EITC:
- If you are working and have a grandchild or grandchildren living with you, you may qualify for the EITC, even if you are 65 years of age or older.
- To be qualified, the grandchild must meet the dependency and qualifying requirements for the EITC.
- The rules for parents and grandparents claiming the EITC are the same.
- If the child’s parents or other family members also qualify for the EITC, or if you are also receiving disability benefits, special rules may apply.
- You must earn income from either a job or self-employment to qualify.
- If you are eligible for this credit, you must file a tax return, even if you do not owe any tax or aren’t required to file.
If you have any questions, be sure to ask the #GoldenGirls, that is what we are here for.