Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
Unfortunately, in order to claim HOH you have to claim the dependent on your tax return, except in a couple circumstances ... one of them being if you are the custodial parent of a child and allow the noncustodial parent to claim the child as a dependent
But, if you are the grandparent you would have to claim the child as a dependent to claim head of household status
Wait...I did some further research and...you CAN claim HOH status, even if the child is claimed as a dependent on someone else's return. Sorry for the confusion.
Per the IRS, ""In certain circumstances, you do not need to claim the child as a dependent to qualify for head of household filing status, such as when the qualifying child is unmarried and is your child, grandchild, stepchild, or adopted child. Refer to Publication 501, Exemptions, Standard Deduction, and Filing Information, for more information."
HR Block did their due diligence. You can rest assured that you handled this the correct way.
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