Financial Help with Raising Grandchildren
Raising children is expensive. This is especially true for older people who, instead of winding down to a leisurely retirement, find themselves once again raising youngsters -- this time, their grandchildren. Financial and social programs can help, though many of them require some form of formal custody arrangement.
A number of government programs offer tax breaks, subsidies or even cash to those with dependents who are not their children, says Elaine King, vice president and director of Wealth & Well-Being Institute at Gibraltar Private Bank & Trust in Coral Gables, Fla. They include the following.
- Temporary Assistance for Needy Families: The benefits from this financial assistance program for low-income families, King says, may include cash and day care expenses, depending on the state and an applicant's situation. Even if a household's income is too high to qualify as a family, grandparents can apply for a child-only grant based on the child's income. This is a federal program administered by the state.
- Medicaid: Caregivers who are family members but not parents can apply in the child's name, says King. Qualifying criteria include the child's income and whether applicants have private health care insurance.
- Social Security Survivors Benefits: Children whose parents are deceased are often eligible for these.
- Supplemental Security Income: This benefit provides monthly benefits to the disabled, including disabled children.
- Earned Income Tax Credit: Federal guidelines for working grandparents allow tax breaks if the taxpayer is caring full-time for dependent children.
- Subsidized guardianship: Although not available everywhere, programs exist in some states to subsidize caretakers who are legal guardians.
The best way to find out what you're eligible for is to check with your local Social Security office, says King.