No, your kids and their social security numbers are not a commodity that you can give or trade to other people in exchange for help. In order to claim a person on your taxes they have to meet certain criteria. For her to claim any of your kids they would have had to live with her for the entire year and she would have had to provide more than half of the child's support. If she's only been helping out for 7 months then that doesn't qualify her to claim any of your kids.

What is it that she's doing to "help us out"?

Just because you can't benefit from having dependents if you have no taxable income dosen't mean you can lend out or sell your children's dependency to another.

If you are receiving public aid, you need to know more states are actually matching up information on those receiving benefits to tax returns submitted. If someone else is asserting the children live with them and support the kids on their tax return, you could find yourself being investigated for welfare fraud because you claimed they lived with you.

No ive been staying with her until our living arrangements were met she helped with food and rides to everywhere and everything me and my kids needed when there dad threw us out. when he was asked he always had more important things to do then help out with his kids. she has been my rock for 15yrs jackson heweitt stated because i didnt make enough to claim them that she was able to i just want to make sure so no problems come back at anyone just want to be able to help my kids get back everything they lost and help my family strive for better. since everything was taking from us and we are starting over from nothing

Your Jackson Hewitt guy is wrong. Wouldn't be the first time, either: http://www.wral.com/news/local/story/1258514/

He purposefully didn't ask the right questions, like are the children related to her and how long they lived with her this year. Because the children are not related to her, she can't claim them this year as they did not live with her for the entire year.

She should be prepared to get flagged for review if she did claim them, particularly if she used the children to claim the EIC. The IRS can have her repay any refund she was not entitled to and also penalize her. Hope she doesn't have her own kids, she could be disqualified from claiming the EIC for up to ten years if she does.