At 66 She’s Raising Her Grandson. She May Qualify for the Same Child Tax Credit and Earned Income Credit as a Parent in Their 30s
Grandparents raising grandchildren often assume federal tax credits are off-limits at their age, but the IRS applies a completely different test than most people expect, and the answer can change how much money stays in their pocket.
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At 66, many grandparents are raising a grandson, which can affect which federal tax credits they claim. Many also assume the child tax credit and the earned income credit are only for parents. Federal tax law looks at how the child is related to the taxpayer and where he lives.
The taxpayer’s age doesn’t matter. That means a grandparent raising a grandchild may qualify for the same child tax credit and earned income credit as a parent in their 30s.
A Grandson Counts as a Qualifying Child
Both credits depend on the IRS definition of a “qualifying child” in 26 U.S.C. § 152(c). The relationship test covers a child of the taxpayer “or a descendant of such” child, and IRS Publication 554 uses a grandchild as its example. The child also has to pass these tests:
- Age: under 19 at the end of the year, or under 24 if he’s 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 didn’t pay for more than half of his own living costs.
- Joint return: he isn’t filing a joint return with a spouse.
What Each Credit Can Be Worth
Child tax credit. It’s worth up to $2,200 for each child under age 17. The One Big Beautiful Bill linked that amount to inflation for tax years after 2025 under 26 U.S.C. § 24(i)(2), so the 2026 figure is subject to that inflation adjustment.
The credit starts shrinking once income tops $200,000 ($400,000 for couples filing jointly). The grandparent and grandson both need Social Security numbers that are valid for work and issued before the return is due (IRS Publication 505).
Refundable piece. Part of the credit can come back as a refund even when no tax is owed. This is known as the additional child tax credit. It topped out at $1,700 per child for 2025. The refund equals 15% of work earnings above $2,500.
Earned income credit. This one requires working for a paycheck or being self-employed. For 2026, with one qualifying child, earnings and adjusted gross income (AGI, income after certain adjustments) both had to stay under $51,593. Investment income had to be $12,200 or less, with the maximum credit amounting to $4,427.
The IRS adjusts the one-child figures each year. The age window of 25 to 65 only applies to workers who don’t have a qualifying child. When claiming with a grandson, there’s no upper age limit.
Head of household. This filing status is for unmarried people who pay over half the cost of a home where a qualifying child lived for more than half the year. In 2026, it comes with a standard deduction of $24,150, compared with $16,100 for single filers.
Dependent care credit. For grandparents who pay for child care so they can work, this credit covers care for a child under 13. For 2026, it applies to up to $3,000 in care costs for one child, and the top credit rate went up from 35% to 50%.
Where a Retired Grandparent Stands
Social Security retirement benefits don’t count as work earnings. A grandparent with no job can’t claim the earned income credit, and the refundable piece of the child tax credit drops to zero. The rest of the child tax credit can still reduce any income tax owed. For those owing little or no tax, it may not be worth much.
How It Plays Out for One Grandmother
In one example, a grandmother 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 of his parents lives in the home. Her earnings, AGI, and investment income all stay under the earned income credit limits, and she pays for after-school care.
| Benefit | Likely Result |
|---|---|
| Head of household | Qualifies if she pays over half the household costs |
| Child tax credit | Qualifies; income is well below $200,000 |
| Refundable part | Depends on how much she earns above $2,500 |
| Earned income credit | Qualifies |
| Dependent care credit | Qualifies for the after-school care costs |
Rules That Can Take the Credits Away
If the parent lives with the grandparent and claims the child, the parent wins. If a parent could claim him but doesn’t, the grandparent can claim him only if their AGI is higher than each parent’s AGI (IRS Publication 501).
Paid tax preparers face a $650 penalty for each claim of head of household, the child tax credit, or the earned income credit they file without meeting due diligence requirements, so preparers typically ask many questions.
A grandson may also be able to get Social Security benefits on a grandparent’s work record. Social Security generally requires that his parents have died or are disabled, or that the grandparent legally adopted him (SSA).
He must also have started living with the grandparent before age 18 and received at least half of his support from them. Social Security makes the final eligibility decision.
One Document to Keep on Hand
Each of these benefits depends on proving the grandson lived with the grandparent for more than half the year. A school, medical, or child care record showing his address matches the grandparent’s is the paper the IRS most often asks for when it questions these claims.
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David Beren has been a Flywheel Publishing contributor since 2022. Writing for 24/7 Wall St. since 2023, David loves to write about topics of all shapes and sizes. As a technology expert, David focuses heavily on consumer electronics brands, automobiles, and general technology. He has previously written for LifeWire, formerly About.com. As a part-time freelance writer, David’s “day job” has been working on and leading social media for multiple Fortune 100 brands. David loves the flexibility of this field and its ability to reach customers exactly where they like to spend their time. Additionally, David previously published his own blog, TmoNews.com, which reached 3 million readers in its first year. In addition to freelance and social media work, David loves to spend time with his family and children and relive the glory days of video game consoles by playing any retro game console he can get his hands on.
