Robert Cotton, Jr. - Page 10




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          liability.  An eligible individual is defined in section                    
          32(c)(1)(A) as either (1) an individual who has a qualifying                
          child for the taxable year, or (2) an individual who does not               
          have a qualifying child for the taxable year, if the individual’s           
          principal place of abode is the United States for more than one-            
          half of the taxable year, the individual is at least 25 years of            
          age but has not reached the age of 65 years before the close of             
          the taxable year, and the individual is not a dependent for whom            
          a deduction is allowable under section 151 to another taxpayer.             
          A married individual will not be entitled to the earned income              
          credit unless he or she files a joint return.  See sec. 32(d);              
          Madrigal v. Commissioner, T.C. Memo. 1998-345; sec. 1.32-2(b)(2),           
          Income Tax Regs.                                                            
               Petitioners were married at the end of 1994 and 1996.                  
          Since Mrs. Cotton did not file joint returns for 1994 and 1996,             
          she is not entitled to the earned income credit for either of               
          these tax years.                                                            
          3.   Mrs. Cotton’s Standard Deduction                                       
               Generally, a taxpayer can elect to itemize deductions or               
          claim the standard deduction.  See sec. 63(b), (c)(1).  If                  
          married individuals file separately and one spouse itemizes                 
          deductions, then the other spouse is not entitled to the standard           
          deduction.  See sec. 63(c)(6)(A).  Petitioners were married                 
          during 1996 and filed separately.  Since Mr. Cotton itemized his            






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