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Discussion
Issue 1. Earned Income Credit
Section 32(a)(1) allows an “eligible individual” to claim an
earned income credit. Generally, an eligible individual is any
person who has a “qualifying child” for the taxable year or any
other person who does not have a qualifying child if that person
resided in the United States for more than one-half of the year, was
over age 25, but under age 65, before the end of the year, and was
not a dependent of another taxpayer for the year. Sec. 32(c)(1)(A).
Section 32(c)(3)(A) defines a qualifying child as an
individual:
(i) who bears a relationship to the taxpayer
described in subparagraph (B) [relationship test],
(ii) except as provided in subparagraph (B)(iii),
who has the same principal place of abode as the taxpayer
for more than one-half of such taxable year [residency
test, and]
(iii) who meets the age requirements of subparagraph
(C) [age test], * * *
An individual satisfies the relationship test with respect to
a particular taxpayer if the individual is:
(I) a son or daughter of the taxpayer,
or a descendant of either,
(II) a stepson or stepdaughter of the
taxpayer, or
(III) an eligible foster child of the
taxpayer.
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Last modified: May 25, 2011