Tax Advantages of Being a Grandparent

  The number of grandkids living with their grandparents has increased over 50% in the last 10 years. According to the U.S. Census this amounts to about 7 million people. Should you find yourself in such a position you will be comforted to know that there are some tax advantages. These include: the filing status of head of household, which is more economical than single status; being able to claim the exemption for your grandchild and qualifying for the earned income credit. There are also advantages with regard to paying educational expenses, and of course of medical and dental costs. In most cases, in order to accrue these tax benefits your grandchild must be under 18 years old. The IRS website has helpful guidance.