Grandparents' Day: Can caring for grandchildren entitle you to a tax refund and an INSS pension? Find out more

Grandparents raising grandchildren may be entitled to a series of little-known benefits, ranging from including minors as dependents on their Income Tax return—and deductions linked to this inclusion—to total tax exemption in the event of a serious illness .

In some situations, it is also possible to leave them the survivor's pension paid by the INSS (National Institute of Social Security) or receive this benefit, as long as economic dependence is proven.

These rights, however, are subject to specific rules. To include a grandchild as a dependent on income tax and deduct education and healthcare expenses, you must have custody. In the case of INSS pensions, a recent federal government law included minors under guardianship among the beneficiaries.

Those who provide informal care, even when grandparents are in fact financially responsible, often face legal barriers.

Including a grandchild as a dependent on their Income Tax returns guarantees the grandparent a larger refund or a smaller amount of tax to pay, but, according to Marco Antônio Ruzene, tax lawyer and partner at Ruzene Advogados, only grandparents with legal custody can declare their grandchildren as dependents.

This means you can include expenses like education and healthcare, and you can also receive a deduction of R$2,275.08. For education expenses, the deduction is R$3,561.50 per dependent. Healthcare expenses have no limit.

"The amount of expenses for a dependent that exceeds this limit cannot be used, not even to offset other expenses. And it's worth noting that not just any education expense can be deducted, but formal education," says the lawyer.

A law sanctioned in March of this year by President Luiz Inácio Lula da Silva (PT) guarantees minors under guardianship the right to receive a pension from the INSS if the responsible adult dies.

This right was being debated in the STF (Supreme Federal Court) precisely because the aunt of an eight-year-old child went to court seeking a pension because the grandfather, who had custody of his grandson since he was five, but did not have legal guardianship, died.

The INSS had denied the pension. Now, with the law, the right is guaranteed.

In less frequent situations, grandparents can also request a survivor's pension for their grandchild. This occurs when the elderly person was financially dependent on the grandchild, with whom they lived, and needs to prove that the grandchild was responsible for their support.

According to Juan Carlos Serafim, partner at Aith, Badari e Luchin Advogados, this concession depends on proof of exclusive economic dependence and is usually only recognized in court .

"It's not a common occurrence. The INSS tends to deny the request, but the courts recognize it when there is proof that the grandson supported his grandfather," he says.

In addition to rights related to raising grandchildren, the elderly also have their own guarantees, such asretirement , BPC (Continuous Benefit Payment) and priority in the processing of legal proceedings.

The most well-known economic right among seniors is retirement. Under current Social Security rules, women can retire at 62 with at least 15 years of contributions. For men, the minimum age is 65, with a 20-year contribution requirement.

It's also common for grandparents to receive a survivor's pension in the event of the death of their spouse. The benefit is intended for the insured's dependents and is granted in the event of their death or presumed death.

Another option is access to the BPC (Brazilian Social Security Fund), which guarantees a monthly minimum wage to seniors aged 65 or older, provided they demonstrate a per capita family income of one-quarter of the minimum wage. The BPC program doesn't require contributions to the INSS (National Institute of Social Security), but it also doesn't include a 13th-month salary or survivor's pension.

Retirees with serious illnesses who require the help of a caregiver are also entitled to an additional 25% of their retirement benefits. According to Serafim, the benefit is granted regardless of whether the retiree already receives the maximum INSS benefit, and regardless of whether the caregiver is a family member or a professional.

The central criterion is the need for permanent assistance from third parties for day-to-day activities.

In addition to these benefits, seniors also have the right to priority in the processing of legal proceedings, requiring the person to be 60 years of age or older and to be a party to the proceedings.

Lucas Menezes, a family law attorney and partner at Pessoa & Pessoa Advogados, explains that, in practice, this doesn't always result in agility. "The Brazilian judiciary is quite overburdened, and even priority cases can take years. But this priority is a right that should always be sought," says the expert.

According to Juan Carlos Serafim, elderly individuals suffering from a serious illness—such as cancer, severe heart disease, or debilitating paralysis—may be entitled to a full income tax exemption on their retirement and pension payments. This benefit also extends to those who have recovered from the illness.

"This applies to grandparents, retirees, and pensioners, regardless of their status. Not just INSS, but also civil servants and those with private pensions," says the expert.

Serafim explains that retirees often fear losing their benefits when requesting exemption, but emphasizes that the action is a tax action against the federal government and does not involve the INSS (National Institute of Social Security). Since the process does not assess the insured's capacity, there is no risk of cancellation of the retirement or pension.

In cases where the grandparent is responsible for a grandchild with some type of mental or physical disability or serious illness, including autism, and who is a pensioner, there may also be an exemption from income tax in the name of the minor, as long as the condition is proven.

Yes. Marco Antônio Ruzene, a tax attorney and partner at Ruzene Advogados, says grandparents with legal custody can claim their grandchildren as dependents and include education and healthcare expenses.

He explains that, when declaring income tax, it is necessary to run simulations to see if it is worth including the dependent, since, if the grandchild has income, even if it is low, from a survivor's pension, alimony or an internship, for example, it may not be worth it.

Yes. Ruzene explains that grandchildren and great-grandchildren can be included as dependents on their income tax return in three situations: up to 21 years of age, provided the taxpayer has legal custody; between 21 and 24 years of age, if they are attending higher education or technical high school and the guardian had custody until age 21; or at any age, in the case of individuals with disabilities.

In addition to age, there are income limits that must be observed. The main one is whether the grandchild had annual taxable income above R$33,888.00 in 2024 or monthly income above R$2,824.00, already considering the simplified tax deduction.

Other situations that also require the declaration are the following:

• If the grandchild received exempt, non-taxable or exclusively source-taxed income above R$200,000
• If the grandson had gross income from rural activity exceeding R$ 169,440
• If the grandchild had assets or rights with a total value exceeding R$800,000 on 12/31/2024
• If the grandson carried out operations on the Stock Exchange with sales above R$40 thousand or with profits subject to Income Tax
• If the grandchild earned income abroad, such as financial investments, profits or dividends

To avoid falling into the red tape when claiming grandchildren as dependents, it's important to note that the grandchild must be under 21 years old, or under 24 if they're pursuing higher education or technical education, and the taxpayer must have legal custody of the child. Furthermore, the grandchild cannot be claimed by another person, such as the parents.

It's also important to keep documents proving the legality of the inclusion. These include the issued legal guardianship agreement, the grandchild's CPF (Individual Taxpayer Registry), proof of education, healthcare, or child support expenses, and, if applicable, documents attesting to the dependent's income.

Lucas Menezes, a lawyer specializing in family law and a partner at Pessoa & Pessoa Advogados, states that grandparents having custody of their grandchildren is exceptional, but can be essential in certain circumstances.

According to him, grandparents can obtain custody when the parents are absent, deceased, negligent, or live in conditions that put the child at risk—such as in cases of domestic violence, drug addiction, or abandonment.

"It's also possible when, even without legal problems, the child has already lived with their grandparents for a long time, is well-adapted, and finds an environment of affection, security, and stability there," says Menezes.

In these situations, legal action is necessary. Before making a decision, the judge usually requests social and psychological studies to assess whether the change is in the child's best interests.

Yes. According to the lawyer, even without custody, parents remain primarily responsible for their children's support. When grandparents legally assume this responsibility, they have the right to request child support from the parents to ensure the child's basic needs are met.

"Brazilian law makes it clear that grandparents' obligations are subsidiary—that is, they only come into play when the parents are unable to do so. But formal custody gives legal force to the request for child support, in addition to facilitating several practical day-to-day issues, such as school enrollment or including the child in a health plan," says the expert.

Yes. Courts have ruled on several occasions that grandparents must pay child support to their grandchildren, but only when the parents cannot afford to fulfill this obligation.

According to Lucas Menezes, this responsibility only falls to grandparents when all possibilities for the parents to pay child support have been exhausted. "In other words, it's not a general rule, but an exceptional measure to protect minors," he states.

This is a fairly common situation, especially in families that, out of affection or necessity, organize informally. However, according to Menezes, in these cases, grandparents don't have the same rights guaranteed by law.

Without proper formalization, they may face difficulties in making important decisions, such as authorizing medical treatments, enrolling the child in school, or including them in a health plan. They may also have trouble accessing social security benefits, such as survivor's pensions.

"In fact, our courts understand that, to be entitled to certain benefits, it is necessary to prove formal custody. In a recent case, from June 2025, for example, the Court of Justice of Paraíba denied a survivor's pension to a child precisely because of the lack of this formalization," says Menezes.

The lawyer explains, however, that there is the possibility of recognizing so-called socio-affective filiation when grandparents effectively play the role of parents in the child's life. In these cases, the effects are even broader, including in civil registration.

In 2024, the STJ (Superior Court of Justice) recognized this type of bond even between grandparents and adult grandchildren, when the emotional relationship goes beyond the conventional.