I have a fifteen yr old that lives at home and that decided to go have a baby well they both live in my house we don't get no help(welfare)or anything so my daughter says I have to give her all the tax money I would get for my grandaughter What are the laws on this and what should I do

No, if it is your income tax you don't have to give the money to anyone. Why are you allowing your daughter to talk to you this way, without respect.

If your making the claim under your taxes and they are dependents then its your money not hers. If she had an income and made out her own taxes then she could claim the child and reap the benefit.

Another thing with her being a teen is that there should be some help available (if in the United States) from programs like W.I.C.

Women Infant Children

Depending on what state you are in your income may count against her ability to get WIC or food stamps. The calculator most likely to help you with that is this one. http://www.fns.usda.gov/wic/howtoapply/incomeguidelines.htm

If your daughter is truly looking for ways to independently take care of her child I would suggest that she start with WIC and she can ask their office for other options for her to have resources to spend to care for her child. Child support would be another option she might want to pursue.

As for the child tax credit, I believe FR Chuck and Califdad are correct. It is a credit to the person paying for the child. If you are claiming her on YOUR taxes then the money goes to YOU.