We may be able to claim our grandkids. Are government benefits such as food stamps, medicaid, cash assistance, etc included in calculating the support of dependents?

[ed1959test]

We are considering whether we can claim our grandkids as dependents.  The grandkids lived with us for more than half of the year but their mother (our daughter) did not.  She doesn't work so our income is higher than hers.  We don't know how to calculate whether we provided more than half of the support of the kids.  Our daughter receives food stamps, medicaid for the kids, cash assistance from the state, and heating assistance based on the size of her family.  (That might be another issue.)   Do all these benefits count in the calculation of what it cost to support the kids?  Does our contribution to the support of the kids have to match the value of those benefits and then exceed what our daughter paid for their support?  Is there a standard number of what it typically costs to support a kid?

[CathiM · Accepted solution]

There is no standard cost to support a child but there is a method for calculating it. Here is an IRS worksheet you can use to see if you provide more than half of your grandchildren's support.  Click here to view the worksheet: Worksheet for Dependent Support.

The government benefits they receive through your daughter do count towards the support that others provide.  See the bottom of the worksheet Line 23 "Enter the amount others provided for the person’s support. Include amounts provided by state, local, and other welfare societies or agencies."

Here are some guidelines to see if you otherwise qualify: 

You can claim a child, relative, friend, fiance (etc.) as a dependent on your 2017 taxes as long as they meet the following requirements:

Qualifying child

• They are related to you.
• They aren't claimed as a dependent by someone else.
• They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They are under the age of 19 (or 24 for full-time students).
• No age limit for permanently and totally disabled children.
• They live with you for more than half the year (exceptions apply).