My son and his girlfriend live together and they have an infant child but her father has medicad on the baby because he is not working but they live in my home. But because the grandfather has the medicad my son was told that neither he or myself can not claim the baby or the mother. My son because he has to be 25 yrs old to claim is child on taxes
And I can not because the grandfather has the medicad please tell me what is legal

There is NO age requirement for your son to claim his son. He or the mother has the IRREVOCABLE right to claim their child on their tax return, and, in doing so, they may be eligible for the Earned Income Credit.

However, if they exercise that right, the state (which administers the Medicaid program) will rightfully determine that the child is NOT the grandfather's dependent, but rather the parent's dependent, and since the parents are not under the Madicaid program, they will DENY the child any Medicaid benefits. The same logic applies to you claiming the child as your dependent.

So you need to decide which is more important: getting a larger tax refund due to the Earned Income Credit, or having the child keep the Medicaid benefits.

You get one or the other, but NOT both!

This is actually fraud. The child must live in the grandfather's home and be his dependent in order for the child to be eligble for Medicaid. I understand that it is for the best interest of the child, but it is still fraud.

Mobea is RIGHT on the tax issue. I forgot about the requirement for the child to LIVE with the grandparent and provide at least half of the child's support.

It may or may NOT be fraud under the Medicaid issue; not sure because your state may NOT require the child live with the grandfather.

I suspect that the child will qualify for medical care under the state's SCHIP program, but if you allow the grandfather to claim the child on his tax return, he IS committing tax fraud and you are a willing accomplice.