Yes.
Your daughter has no reason to file. The money you hear about people getting for just filing a
tax return claiming kids requires her to
have some earned income (wages or self employment). Without earned
income, she is not eligible for the "refundable" Earned Income
Credit or Additional Child Tax Credit.
Even if she had a little income, she and your grandchild would still be you qualifying children for tax purposes, as long as she was living with you and not providing more than half her own support.
