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Grandparents Caring for Grandchildren Should Check Their Eligibility for EITC

Grandparents who work and are also raising grandchildren might benefit from the earned income tax credit. The EITC is a refundable tax credit. This means that if you qualify and claim the credit, you could pay less federal tax, pay no tax, or even get a tax refund. Grandparents who are the primary caretakers of their grandchildren should remember these facts about the credit:

  • 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.
  • Eligible grandparents must file a tax return, even if they don’t owe any tax or aren’t required to file.

For more information regarding the EITC, always consult a Certified Public Accountant. Submitted by: Dennis Gallant, CPA, Senior Manager, Tax Services, Thomas Howell Ferguson P.A. CPAs, (850) 668-8100, dgallant@thf-cpa.com.

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