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Liam O'Donnell

Can I claim my grandkids that live with me on taxes if they're autistic?

I've been living with my daughter and her two autistic grandchildren in my home for about 3 years now. The situation is that I've basically been the primary caregiver for all of them throughout this time. For the past year especially, I've been handling most responsibilities for both kids - taking them to doctor appointments, covering their expenses, the whole deal. Around August or September last year, my daughter started receiving disability benefits for the children, but she hasn't really contributed financially to the household or their care. I'm still the one handling most of their needs and expenses daily. I'm wondering if I can claim my grandkids as dependents on my taxes? Would there be any problems if I did this since my daughter gets disability for them? She lives here too but I'm providing most of the support. Just trying to figure out what's right for my tax situation since I'm shouldering most of the financial burden.

Amara Nwosu

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You absolutely can claim your grandchildren as dependents if you meet the qualifying relative tests. Since they lived with you all year and you provided more than half of their support, you likely qualify. The key factors are: 1) They lived with you for the entire year, 2) You provided more than 50% of their financial support, 3) Their income is below the dependent threshold, and 4) They aren't filing a joint return with someone else. The fact that your daughter receives disability benefits for them doesn't automatically disqualify you, but it does complicate things. Those benefits are technically considered the children's income, not your daughter's. However, if you're still providing more than half of their total support when counting everything (housing, food, clothing, medical care, etc.), you could still qualify to claim them.

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AstroExplorer

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But doesn't the mom technically have to sign some form saying she's not claiming them? I thought if you're not the parent you need permission or something. Also how would they calculate the "more than half support" part? Like do I need receipts for everything I buy?

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Amara Nwosu

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Great questions. If the children meet the tests to be your qualifying relatives (rather than qualifying children), you don't necessarily need the parent to sign any forms. However, if there's any question about who provided more support, having Form 8332 (Release of Claim to Exemption) signed by your daughter would definitely help avoid disputes with the IRS. For calculating support, you don't need receipts for everything, but you should be able to document major expenses if asked. Calculate the total cost of housing, food, utilities, clothing, education, medical care, transportation, and recreation for each child. Then determine how much of that you provided versus what your daughter contributed (including the disability benefits spent on the children).

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Dylan Cooper

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Does it tell you how to handle the disability payment situation? That seems like the most complicated part here. I'm curious if the system actually understands nuanced situations or just does basic calculations.

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You just create an account and answer questions about your tax situation. There's no upfront payment required to get started and explore what it can do for you. It's much more affordable than paying a CPA for a consultation. The system absolutely handles disability payment situations. It specifically asked about benefits received for the children and who was using those funds. It has detailed questions about financial support that helps determine if you've provided more than 50% support even when government benefits are involved. The analysis is actually quite detailed and looks at housing, food, medical, education and other expenses.

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Dylan Cooper

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Sofia Perez

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Sofia Perez

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Ava Johnson

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One thing nobody's mentioned yet - make sure you look into the EITC (Earned Income Tax Credit) rules too if you're going to claim them. There are special rules for claiming EITC with qualifying children, and the disability status might actually help you qualify for more. Plus don't forget about the Child Tax Credit and the Credit for Other Dependents. When I claimed my niece who has special needs, I got way more back than I expected because of these credits. Just make sure you have documentation of their diagnosis and any expenses related to their care.

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Thanks for mentioning this! Do you know if I would qualify for the Child Tax Credit specifically, or would it be the Credit for Other Dependents since I'm the grandparent, not the parent? Also, would my daughter still be able to get the disability benefits if I claim the kids on my taxes?

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Ava Johnson

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You can potentially qualify for the Child Tax Credit even as a grandparent! The relationship test for the CTC includes grandchildren. As long as they meet the other tests (lived with you more than half the year, you provided more than half their support, they're under 17, etc.), you can claim the full Child Tax Credit, which is worth much more than the Credit for Other Dependents. Your daughter can continue receiving the disability benefits for the children regardless of who claims them on taxes. The tax dependency status and disability benefits eligibility are separate systems. The important thing is that you're actually using the majority of resources (including your own money plus a portion of those benefits) to support the children.

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Miguel Diaz

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Has anyone dealt with the autistic dependent situation specifically? My grandson is also on the spectrum and I found there are additional tax benefits I qualified for, like the Child and Dependent Care Credit if you pay for specialized care while you work. Also, some therapy expenses might qualify as medical expenses if you itemize deductions instead of taking the standard deduction.

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Zainab Ahmed

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Yes! We claim my wife's brother who has autism and we deduct a lot of his therapy expenses as medical expenses. If their medical expenses exceed 7.5% of your AGI, you can itemize and deduct them. Also look into FSA or HSA accounts to pay for these expenses pre-tax if possible.

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