According to the IRS, a dependent must: 1. Be a US Citizen 2. Be a relative or live in your house all year 3. Not be able to file a joint tax return with someone else 4. Make less than $3000 of gross income 5. You have provided over half the person's total support for the year. Sounds to me like you can claim them

You can claim all three as they are all your "qualifying children" according to the IRS. You are also entitled to the child tax credit for her two children. Without any income, your granddaughter does not need to file.

yes, it sounds like you can claim them, just be sure you can PROVE your claim on paper, othewise the IRS will through your clain out and take you for everything they can. i couldn't a few years ago and got screwed. see, i am living with my mother and little sister, the bills are all under mom's name but she has been unemployed, and without any income, for the last 8 years and i provide all the income in our household. i was told by a person at work that i could claim my mother and sister as Dependants since they have Zero income and i provide the rent, utilities and food. well i tried it and the tax prep people said i could and would have just over 3000.00 coming back. a few weeks latter i get a check for the 1308.00 withheld from my years pay and a letter saying i was being audited because a mistake on my 1040 ez. (the prep person put down head of household and single.) not knowing any better i spent the check to help out with the bills. and sent in the statement and bills the irs requested, the rent, gas and electric receipts all show my mothers name and the organization which helps us by paying 13% of the rent based on household earnings said "no, we're not responsible for providing income verification records, although they carefully monitor ever cent we get. so the moral is "if you can't prove beyond a shadow of a doubt that you are entitled to claim someone or something, DON'T DO IT!!!!!!!!