Probably not. “Provided for them” isn’t as important as “they
lived with you”. Separate apts but in the same complex doesn’t count as living
with you.
There are two types of dependents, "Qualifying
Children"(QC) and standard ("Qualifying Relative" in IRS
parlance even though they don't have to actually be related). There is no
income limit for a QC but there is an age limit, a relationship test and residence test.
Only a QC qualifies a taxpayer for the Earned Income Credit and the
Child Tax Credit. They are interrelated but the rules are different for
each.
Your granddaughter (and your daughter) cannot be your QC, because she does not
reside with you.
A person can still be a Qualifying relative dependent, if
not a Qualifying Child, if he meets the 6 tests for claiming a dependent:
1. Closely Related OR live with the taxpayer ALL year
2. His/her gross taxable income for the year must be less
than $4,050 (2016-17)
3. The taxpayer must have provided more than 1/2 his support
In either case:
4. He must be a US citizen or resident of the US, Canada or
Mexico
5. He must not file a joint return with his spouse or be
claiming a dependent of his own
6. He must not be the qualifying child of another taxpayer
Welfare with food stamps Cash Aid and medical doesn't count
as income, for the income test, but that money does count as support not
provided by you, for the support test.
The IRS has a worksheet that can be used to help with the
support calculation. See:
http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf
The support value of a home is the fair market rental value, divided by the
number of occupants.
