At 66, She’s Caring for Her Grandson — and Could Still Get the Same Tax Credits as a Younger Parent

Many grandparents who are raising grandchildren assume federal tax breaks are unavailable to them because of their age. In reality, the IRS uses a different set of rules than most people expect, and those rules can make a meaningful difference in how much money stays in the household.

At 66, a grandparent caring for a grandson may still be able to claim federal credits that many people think are reserved for parents. The child tax credit and the earned income credit are based on the child’s relationship to the taxpayer and where the child lives, not on the taxpayer’s age.

That means a grandparent raising a grandchild can sometimes qualify for the same child tax credit and earned income credit as a parent in their 30s.

Why a Grandson Can Count as a Qualifying Child

Both credits rely on the IRS definition of a “qualifying child” under 26 U.S.C. § 152(c). The relationship requirement includes a child of the taxpayer “or a descendant of such” child, and IRS Publication 554 specifically uses a grandchild as an example. The child must also meet these conditions:

• Age: under 19 at the end of the year, or under 24 if he is a full-time student, and younger than the taxpayer.
• Residency: he lived with the taxpayer in the U.S. for more than half the year.
• Support: he did not provide more than half of his own support.
• Joint return: he is not filing a joint return with a spouse.

What the Credits May Be Worth

Child tax credit. This credit is worth up to $2,200 for each child under age 17. Under the One Big Beautiful Bill, that amount is tied to inflation for tax years after 2025 under 26 U.S.C. § 24(i)(2), so the 2026 amount will depend on the inflation adjustment.

The credit begins to phase out once income exceeds $200,000, or $400,000 for married couples filing jointly. Both the grandparent and the grandson must have Social Security numbers valid for work and issued before the return is due, according to IRS Publication 505.

Refundable portion. Part of the credit can still be refunded even if no tax is owed. This is called the additional child tax credit. For 2025, it was capped at $1,700 per child. The refund is equal to 15% of work income above $2,500.

Earned income credit. This credit is available only to people who have wages or self-employment income. For 2026, a taxpayer with one qualifying child needed earnings and adjusted gross income to remain below $51,593, while investment income had to stay at $12,200 or less. The maximum credit was $4,427.

The IRS updates the one-child limits each year. The 25-to-65 age range applies only to workers without a qualifying child. When a grandson qualifies, there is no upper age limit.

Head of household. This status is available to unmarried taxpayers who pay more than half the cost of a home where a qualifying child lived for more than half the year. For 2026, the standard deduction for this filing status is $24,150, compared with $16,100 for single filers.

Dependent care credit. Grandparents who pay for child care so they can work may also qualify for this credit if the child is under 13. For 2026, up to $3,000 in care costs for one child can qualify, and the top credit rate increased from 35% to 50%.

What Happens If the Grandparent Is Retired

Social Security retirement benefits do not count as work earnings. If a grandparent does not have a job, they cannot claim the earned income credit, and the refundable part of the child tax credit falls to zero. The remaining child tax credit can still reduce tax owed, but for someone who owes little or nothing, the benefit may be limited.

An Example of How It Can Work

Consider a grandmother who is unmarried and works part time. Her grandson is in grade school, has a valid Social Security number, and lived with her all year. Neither parent lives in the home. Her earnings, adjusted gross income, and investment income all remain below the earned income credit limits, and she also pays for after-school care.

When the Credits Can Be Lost

If a parent lives with the grandparent and claims the child, the parent has the right to do so. If a parent could claim the child but does not, the grandparent may only claim him if their adjusted gross income is higher than each parent’s AGI, according to IRS Publication 501.

Paid tax preparers can face a $650 penalty for each head-of-household, child tax credit, or earned income credit claim they file without meeting due diligence requirements, which is why they often ask many detailed questions.

A grandson may also be eligible for Social Security benefits based on a grandparent’s work record. In general, Social Security requires that the child’s parents have died or be disabled, or that the grandparent legally adopted the child.

The child must also have begun living with the grandparent before age 18 and received at least half of his support from them. Social Security makes the final decision on eligibility.

Keep One Key Record

All of these benefits depend on showing that the grandson lived with the grandparent for more than half the year. A school, medical, or child care record that lists his address in line with the grandparent’s home is one of the documents the IRS most often requests when it reviews these claims.