I have 2 adult children, one unemployed pending disabliilty decision and we have power of attorney, and the other one works part time and goes to school and has a child, both of them do not pay any rent or untilites and under our care, how would we claim this on our taxes without hurting the one with the child?
I've already tried...
Answers
About the Expert
Paul Thode has many years of experience preparing taxes. In addiion he has many years of accounting experience, ranging from Assistant Controller to Chief Financial Officer of a publicly traded company. He has a Bachelors in Managerial Economics from the University of California, Berkeley. He has a Master's in Accounting from Golden Gate University. He has an MBA in Finance from Golden Gate University. View Profile
You can claim an adult child that is disabled.
For the other one, it depends, how much did she earn and how old is she.
If under 24 you can claim her, you can also claim the grandchild too.
However, if you do this, your daughter cannot get Earned Income Credit, but she could file her return and get back most of what she paid in, if he income is low.
The way I usually handle this is to do both returns and see what benefits the family the most.
Too often the child goes out and files without thinking about what the best solution for the family.
Best regards,
Paul
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