Regarding dependency claims, which statement is true for a single mother living with her child’s grandparents?

When considering dependency claims, it is essential to understand the rules governing who qualifies as a dependent and the specific conditions that must be met for a taxpayer to claim a dependent. In this scenario, the grandparents living with their grandchild may qualify to claim that child as a dependent if they meet certain IRS requirements.

Grandparents can claim a grandchild as a dependent if they provide more than half of the child's support and the child lives with them for more than half the year. In this case, since the child is living with the grandparents, they are likely to provide the majority of the child's support and meet the requirements for the dependent exemption.

The single mother may not be able to claim her child as a dependent because the IRS rules state that a taxpayer cannot claim a dependent if they are not the one providing the primary support. If the grandparents are providing the support and the child resides primarily with them, it is more favorable for the grandparents to claim the child as a dependent.

On the other hand, the mother might not meet the criteria since she may not be providing over half the support needed. Therefore, in this unique living situation, it is valid for only the grandparents to claim the dependent, making the statement that only the grandparents can claim a dependent