To claim HOH that person needs to provide more then 1/2 of the total household costs so if the daughter doesn't own the home HOH is not likely. But before any of you file a return you all need to sit down and do some calculating since the grandchild could/may be a qualifying child for both the daughter and the grand parents. The IRS will let you choose who claims the grandchild in that situation as long as the grandparent's income is higher than the parent's income. If you cannot agree then the parent has the superior right to claim the grandchild.
