How Do You Qualify for Social Security Disability Benefits?
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Raising a grandchild can be tough financially, but grandparents should be aware that there is a tax credit available that could help them. Working grandparents who are supporting their grandchildren may qualify for the earned income tax credit, which could reduce the amount they pay in taxes by thousands of dollars or allow them to receive a refund.
The earned income tax credit is a benefit for working people with low to moderate incomes and dependents, and this includes grandparents. (Taxpayers without a dependent may also qualify, but it is more difficult.) To be able to claim the tax credit, you must be raising a child who meets the following criteria:
In addition, to qualify for the tax credit your income must be below certain limits, depending on how many dependents you have. The limits for 2020 are as follows:
The maximum amount of the tax credit also depends on how many dependents you have. In 2020, the following are the maximum credit amounts:
For more information from the IRS about the tax credit, click here.