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dependent of the taxpayer, if the taxpayer is entitled a
deduction for the taxable year for that other person under
section 151. See sec. 2(b)(1)(A)(i) and (ii).
As we discussed above, petitioner concedes that Chanda is
not his child and did not reside in his home during 1997.
Accordingly, we hold that petitioner is not entitled to claim
head of household filing status for 1997.
Petitioner claimed an EIC in the amount of $2,210 on his
1997 Federal income tax return. In claiming the EIC, petitioner
listed Chanda as a qualifying child. 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 1997 the applicable credit percentage and the phaseout
percentage are 7.65, the earned income amount is $4,340, and the
phaseout amount is $5,430. See sec. 32(b). Accordingly, an
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Last modified: May 25, 2011