- 7 - than are taxpayers with fewer than two qualifying children. Sec. 32(a) and (b). Respondent argues that petitioner had no qualifying children in either 1995 or 1996 because no individual met the relationship and residency requirements of section 32(c)(3). As is relevant here, the definition of a qualifying child includes a child or an “eligible foster child” of the taxpayer who has the same principal place of abode as the taxpayer for more than half of the taxable year. Sec. 32(c)(3)(A).2 An eligible foster child is an individual who the taxpayer cares for as the taxpayer’s own child and who has the same principal place of abode as the taxpayer for the taxpayer’s entire taxable year. Sec. 32(c)(3)(B)(iii). On his returns, petitioner claimed that Dustin and Kristion were qualifying children in 1995, and that Kristion and Brittany 2Respondent presumably is not arguing that Brittany cannot be a qualifying child in 1996 merely because she was born in September of that year. The Internal Revenue Service has taken the position that the birth of an individual during the taxable year does not affect the status of that individual as a qualifying child, so long as she lived with the taxpayer during the entire time she was alive. See the Internal Revenue Service’s instructions accompanying Schedule EIC, Earned Income Credit (Qualifying Child Information), and their Publication 596, Earned Income Credit (as published currently and for the years in issue). This position is in accordance with the legislative history of sec. 32, which states that rules similar to those governing head of household filing status should be adopted for the sec. 32 residency requirements. H. Conf. Rept. 101-964, at 1037 (1990), 1991-2 C.B. 560, 564; sec. 1.2-2(c)(1), Income Tax Regs.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011