Your daughter can be your qualifying child dependent if she is under the age of 19 at the end of 2023, and you are providing at least half of her support.
It is unlikely that a 17 year old with a part-time job is actually supporting herself and her child. They live in your home, so the more likely scenario is that you can claim both of them as your dependents. You do not mention whether you have income from working. If so, then you are more likely to get the full amount of the refundable child tax credit if you claim the child as your dependent. You cannot get the CTC for your daughter since she is older than 16, but you can get the $500 credit for other dependents for claiming her. You *might* be eligible to get earned income credit for claiming your daughter and her child, depending on how much income you received from working.
If your daughter is younger than 19 at the end of 2023, then she can still be claimed as your qualifying child, as can your grandchild, no matter how much your daughter made at her part-time job.
When tax time comes, you might want to prepare tax returns with your daughter claiming the baby and one with you claiming both of them to see which way it works out best; most likely it will come out the best with you claiming both of them.
IRS interview to help determine who can be claimed:
https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent
https://ttlc.intuit.com/questions/3113432-who-can-i-claim-as-my-dependent
WHO CAN I CLAIM AS A DEPENDENT?
You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2023 taxes as long as they meet the following requirements:
Qualifying child
- They're related to you.
- They aren't claimed as a dependent by someone else.
- They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
- They aren’t filing a joint return with their spouse.
- They're under the age of 19 (or 24 for full-time students).
- No age limit for permanently and totally disabled children.
- They lived with you for more than half the year (exceptions apply).
- They didn't provide more than half of their own support for the year.
Qualifying relative
- They don't have to be related to you (despite the name).
- They aren't claimed as a dependent by someone else.
- They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
- They aren’t filing a joint return with their spouse.
- They lived with you the entire year (exceptions apply).
- They made less than $4,700 in 2023.
- You provided more than half of their financial support.
When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them. There may be other tax benefits you can get when you claim a dependent.
Related Information:
Am I Head of Household?
https://ttlc.intuit.com/questions/1894553-do-i-qualify-for-head-of-household
https://ttlc.intuit.com/questions/2900097-what-is-a-qualifying-person-for-head-of-household
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
