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It depends. By the way, congratulations on your granddaughter!
You may claim your granddaughter if she is your Qualifying Child or Qualifying Relative (she likely is not your qualifying relative). You can claim her as a qualifying child if:
If your daughter lives with you and you are allowed to claim your daughter, you automatically qualify to claim your granddaughter as well because someone who is a dependent cannot claim a dependent. Here is a link to the IRS' definition of a Qualifying Child for more information.
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