Hal_Al
Level 15

Get your taxes done using TurboTax

@gardnerds 

Yes, the grandparent is eligible for EIC, because it is earned income.  It goes on line 1 of form 1040 with the HSH notation. See above for how to enter in TT.  Anything on line 8 of Schedule 1 is NOT earned income.

 

We have seen cases of grandparents claiming EIC being questioned by the IRS, in this situation. Keep records. At a minimum pay by check.