Question

Deduction of kids that we parent

Forum|Forum|6 years ago
March 14, 2020
1 reply
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My wife and I are legal guardian for two of our grandchildren (one not paternal to us). They each receive approximately $900.00 / mo in social security. This works out to more than half of their expense but it appears than SSC is not considered as income. Can I deduct them as dependents?

Also, will taking the deduction cause them to loose their Medicaid Insurance?

Dependents

ColeenD3

Regarding Medicaid, you would have to contact that agency.

There are two aspects to the income. It is not gross income as income from a job would be but it still is valid when determining support. A child dependent can't contribute over half of their own support. If you provide more than $900 per month for each, then they meet the support test. A Qualifying Relative also has support qualifications.

Please see this HELP article for more information.