- Grandparents raising their grandchildren qualify for certain tax benefits, reducing their tax liabilities. According to the IRS, grandparents receive a tax exemption for each grandchild who qualifies as their dependent. If the grandparents work and need to use childcare services for their grandchildren, they may qualify for the dependent care credit. The grandchild must be younger than 13 years of age or incapable of caring for himself. A tax exemption reduces the grandparents' taxable income. A tax credit reduces the grandparents' tax liability.
- All states provide a stipend for grandparents raising their grandchildren. Kinship care programs operate similarly to the foster care programs in each state. In some cases, the state assigns a social worker who coordinates the services available for the grandchildren and the grandparents. In other cases, the parents and grandparents work out the details without state involvement. This includes providing medical coverage for the grandchildren and financial support for the grandparents. The stipend for grandparents provides a smaller amount of pay than foster care payments.
- Grandparents raising their grandchildren have the right to receive child support payments from the parents. Grandparents work with the state's child support division to file a claim against the parents for regular payments. In some states, the child support division enforces wage garnishment. The state agency acts as the intermediary between the grandparents, the parents and the employer to ensure the payment process happens smoothly.
- When parents pass away, their children often quality for Social Security survivors insurance. The Social Security Administration calculates these payments based on the deceased parent's earnings throughout their life. Children receive 75 percent of the deceased parent's benefit. These payments go directly to the grandparents, as the guardians, to finance the support of their minor grandchildren.
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