On Children, Their Children and Taxes

Used to be that kids grew up, got married and created little tax deductions of their own. But in the last several years, kids, sometimes as young as 12, have been having kids. From a tax standpoint, that can be confusing.

If you’re a mother, living with your mother and caring for your child, do you file “single” or “head of household”? Is your child your dependent or your mother’s? What if the child’s father contributes support?

It depends on who pays most of the child’s expenses. If the grandparent provides more than half the support for the child and its mother, the grandparent claims both. If the father is paying less than 50% of the baby’s expenses, he does not get a deduction.