Deductions & credits

for your daughter to file HOH, there needs to be a dependent.  if you claim your grandchild, that leaves your daughter as filing "single". 

assuming you claim your grandchild, for your daughter to claim EITC...

  • your daughter must be at least 25 years old. 
  • there is no requirement that she have a qualifying child to claim EITC, but HER income must be less than $15,820 to qualify. 

if she claims your grandchild, 

  • your daughter must be at least 25 years old. 
  •  HER income must be less than $41,756 to qualify.

 

also, and the rules are still murky and not programmed into TT yet, because of COVID relief, if her 2020 income is less than 2019 income and if it creates a better result, she can use 2019 income on her 2020 tax return solely to calculate EITC.  How that works and if that is the true rule is not clear as it's not programmed into TT yet.