If you claim your grandchild or other child you are raising, here are some tax credits you may be able to use.
The Dependency Exemption lets you deduct $4,050 in 2017 on each qualifying dependent.
If you have some earned income but it is moderate to low, you may qualify for the Earned Income Credit.
If you make too much for the Earned Income Credit, you may qualify for the Child Tax Credit which is up to $1,000.
If you’re working, and have to have child care to work, there’s a Child and Dependent Care Credit that can help.
If you choose to legally adopt the child living with you, there’s an Adoption Credit that provides a federal tax credit of up to $13,460 per child. This only applies if you have a tax liability.
There are even education-related tax credits such as the American Opportunity Tax Credit or the Lifetime Learning Credit to help if the child goes to college.
To learn more about these tax benefits call 800-829-1040, or visit http://www.irs.gov. Or you can call the IRS publication line at 800-829-3676 and ask them to mail you the following publications: 501, 503, 596, 970, 972, and Form 8839.