@Hal_Al wrote:
@Opus 17 said "If your grandchild has more than $4300 of taxable income to report, they can’t be a qualifying child dependent and will be a qualifying relative dependent"
I don't think that's right. His disability makes him a qualifying child regardless of income or age. He just needs to live with the grandparents and not pay more than half his own support. It's a qualifying relative that can't have more than $4300 of income.
That's generally correct, I was over-thinking.
However, we must remember that "disabled" for income tax purposes is not the same as other medical definition of disability. Disabled for income tax purposes means "unable to perform substantial gainful work." The child's ability to work a regular job for minimum wage without substantial accommodations is considered proof that the child can perform gainful work, even if they have medical issues. So while there is no fixed dollar limit to be a "qualifying child" dependent, if the dependent has a substantial income, the IRS may start asking questions.
@Opus 17 said "there is very little difference in tax benefit between being a qualifying child or a qualifying relative dependent"
A qualifying child qualifies the taxpayer for child based EIC
Good point, if the grandparents have income earned from working.
