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upon section 32(c)(1)(A)(ii). Although petitioner satisfies the
conditions of section 32(c)(1)(A)(ii), section 32(a) provides for
a phaseout of the earned income credit under a formula set out in
the statute.2 Petitioner's adjusted gross income for 1996
($10,311) exceeded the maximum amount under which he would have
been eligible to claim the earned income credit without a
qualifying child. Respondent is, therefore, sustained on this
issue.
To reflect the foregoing,
Decision will be entered
for respondent.
2
With regard to the phaseout of the earned income
credit, sec. 32(a)(2) provides:
(2) Limitation.--The amount of the credit
allowable to a taxpayer under paragraph (1) for any
taxable year shall not exceed the excess (if any) of--
(A) the credit percentage of the earned
income amount, over
(B) the phaseout percentage of so much
of the adjusted gross income (or, if greater,
the earned income) of the taxpayer for the
taxable year as exceeds the phaseout amount.
In the case of an eligible individual with no qualifying child,
the applicable credit percentage and the phaseout percentage are
7.65, the earned income amount is $4,220, and the phaseout amount
is $5,280. Sec. 32(b). Therefore, the credit is not available
for taxpayers with no qualifying child and an adjusted gross
income in excess of $9,500.
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Last modified: May 25, 2011