My daughter is 41 years old with severe medical condition which prevents her from gainful employment. She is divorced & is custodial parent of 2 children ages 16 and 15. I provide ~85% support for all 3, daughter's ex-husband provides other ~15% via court-ordered child support. I claim all 3 as Dependents on my tax return, but Child Tax Credit is complicated due to the "lived with you" criteria in qualifications language. My home is too small for my daughter & 2 grandchildren to live with me at same address, so I bought a house for them to live in. I own the house they live in & pay 100% of home expenses, plus ~85% of daughter & grandchildren living expenses. However, they do not live at same address so I answer "No" to the "Live with you" question & only get the lower Qualifying Dependent credit for all 3 of them. Since I pay virtually all expenses for the roof they live under, even though not same address as me, seems like I should get full Qualifying Child credit for the 2 grandchildren under age 18, with Qualifying Dependent credit for my adult child. Appreciate if anyone can help me figure this out - am I able to state all 3 "lived with me" for tax purposes?
