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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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