Me and my daughter supported her children as we all live together. Can we both claim the children? Also, can our income be combined?

ANSWER

The BIDaWIZ Team's Answer:

You cannot both claim the same children as dependents. However, you as the grandparent may be allowed to claim one or more children that your daughter doesn't claim, granted that you have a higher adjusted gross income than your daughter. In order for a grandparent to claim one or more grandchildren, they must have a higher adjusted gross income than their child when they all live together. This is referenced in IRS Publication 501.