guardianship of grandkids

If the children have been supported by you and have lived with you for most of 2021 then you are the one who gets the child-related credits including the child tax credit.   It should not hurt you that your son has been receiving those monthly payments---but he will likely have to pay them back when he files his own return since he cannot claim the children on his own 2021 tax return.

To claim a grandchild as your dependent

When you enter the child’s name in Personal Info, you will be asked “What’s your relationship to  [child’s name]?”  

           Choose “another person”

            a drop down menu will appear that lets you choose grandchild

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2020 taxes as long as they meet the following requirements:

Qualifying child

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
• No age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year.

Qualifying relative

• They don't have to be related to you (despite the name).
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They lived with you the entire year (exceptions apply).
• They made less than $4,300 in 2021.
• You provided more than half of their financial support.

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them. There may be other tax benefits you can get when you claim a dependent.

Related Information:

• What does "financially support another person" mean?
• What is a "qualifying person" for Head of Household?
• Does a dependent for 2020 have to live with me?
• Do I qualify for Head of Household in 2020?

Hello Deb7777,

Since the children are living with you and you are providing more then half of their support you can claim them as dependents when you complete your return on TurboTax this year.

You will be able to get the child tax credit for the dependents since you are claiming them and the father will have to pay back the advanced payments he received unless he qualifies for the repayment protection

As a grandparent, it is sufficient that the children lived in your home more than half the year.  It is not necessary that they be placed in your home by an official process.  

You may claim the children as dependents, and you will receive any tax benefits allowed.  You are not affected by any tax benefits received by anyone else.  You will probably get the $1400 round 3 stimulus and the $3000 or $3600 child tax credit for each child.

If another parent received a stimulus payment and does not claim the children as dependents, they will not have to pay it back.  But if another parent received advance child tax credit payments and does not claim the children as dependents, they will have to repay the advance child tax credit.

If another parent claims the children as dependents, you might be blocked from e-filing.  You can file by mail, and the IRS will investigate, and whoever did not qualify to really claim the children will have to repay any tax credits with interest and penalties.  You will want to keep documentation about where the children actually lived, for at least 3 years, in case this happens.