Kerry L. Brignac - Page 5




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          petitioner is not entitled to head of household filing status for           
          1995 and 1996.                                                              
          3.  Earned Income Credit                                                    
               Petitioner claimed earned income credits (EIC) in the                  
          amounts of $2,921 and $2,790 on his 1995 and 1996 Federal income            
          tax returns, respectively.  In claiming the EIC, petitioner                 
          listed his sons as qualifying children.  Section 32(a) generally            
          provides an eligible individual with an EIC against his or her              
          income tax liability.  However, section 32(a)(2) limits the                 
          amount of credit allowable to a taxpayer.                                   
               Section 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                     
                    modified 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, for 1996 the applicable credit percent and the phaseout              
          percentage are 7.65, the earned income amount is $4,220, and the            
          phaseout amount is $5,280.  See sec. 32(b).  In the case of an              
          eligible individual with no qualifying child for 1995, the                  
          applicable credit percent and the phaseout percentage are 7.65,             
          the earned income amount is $4,100, and the phaseout amount is              
          $5,130.  See Rev. Proc. 94-72, 1994-2 C.B. 811.  Accordingly, an            
          eligible individual with no qualifying children is not entitled             
          to the earned income credit for 1995 and 1996 if his adjusted               



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