Alert
Close

Watch the NASCAR race on Sunday at Martinsville Speedway. Join the Drive to End Hunger!

Highlights

Open

You and Your Town Contest-You could win an AARP RealPad

AARP Auto Buying Program

Contests and
Sweeps

$10,000 Winter Escapes Sweepstakes

Beat the cold and cozy up to a chance of winning $10,000! See official rules.

Driver Safety

Piggy bank on the road - AARP Driver Safety

Take the new AARP Smart Driver Course!

AARP Books

Visit the Money Section

Enjoy titles on retirement, Social Security, and becoming debt-free.

Jobs You Might Like

most popular
articles

Viewed

Tax Deductions for Grandparents

Quick tips if you are raising your grandchildren

En español | Alicia and Trino Jiménez are part of a growing number of Hispanic grandparents stepping in for parents facing hardships. Of some 2.5 million U.S. households in which grandparents care for grandchildren under 18, more than 450,000 —1 8 percent — are Latino.

Alicia Jiménez took in her four grandchildren when their parents' struggles reached a crisis point. To provide support, she learned about tax deductions (which reduce taxable income) and credits (which lower your tax bill dollar for dollar).

In their 2010 return, grandparents who claim grandchildren as dependents (see "qualifying child" below) can take a tax deduction of $3,650 per child. Tax credits include $1,000 for each grandchild under the Child Tax Credit and up to $3,000 for one child and $6,000 for two or more to pay for child care expenses (for children 12 and under) that enable grandparents to work or look for work.

Qualifying child
A "qualifying child" can be a son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them, such as a grandchild. Your adjusted gross income must be greater than that of the children's parents. The children must have lived with you for more than half of 2010 and be:

  • under the age of 17;
  • dependent on you for half of their support for 2009; and
  • a U.S. citizen, U.S. national, or U.S. resident alien.

 

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

The Cheap Life

Jeff Yeager Cheap Life Ultimate Cheapskate AARP YouTube web series save money

Catch the latest episode of The Cheap Life starring Jeff Yeager, AARP's Ultimate Cheapskate. Watch

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Life insurance: you are covered rain or shine

Exclusive annuities for members from AARP Lifetime Income Program from New York Life.

AARP Credit card from Chase

Members can get cash back rewards on purchases with the AARP® Credit Card from Chase.

Homeowners Insurance
Member Benefits

Join or renew today! AARP members receive exclusive member benefits & affect social change.

Rewards for Good

Your Points Balance:

Learn More

Earn points for completing free online activities designed to enrich your life.

Find more ways to earn points

Redeem your points to save on merchandise, travel, and more.

Find more ways to redeem points