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child care costs were incurred to care for Ayla, her qualifying
child, while petitioner worked. As previously indicated, Ayla
qualifies as petitioner’s dependent for 1997 and 1998. As a
result, petitioner is entitled to the full child care credits for
1997 and 1998.
The final issue for decision is whether petitioner is
entitled to earned income credits (EIC) for 1997 and 1998. Under
section 32(a), a taxpayer may be allowed an EIC if she is an
eligible individual. An eligible individual includes one who has
a qualifying child for the taxable year. Sec. 32(c)(1)(A)(i).
Under section 32(c)(3)(B) a qualifying child includes a daughter
of the taxpayer or a descendant of a daughter. The qualifying
child must have the same principal place of abode as the taxpayer
for more than one-half of the tax year, under section
32(c)(3)(A)(ii), and the child must not have attained the age of
19, under section 32(c)(3)(C)(i).
Additionally, in order to receive the EIC, the taxpayer must
have identified the child on her return under the identification
rule of section 32(c)(3)(D), but need not have so identified the
child to be an eligible individual with respect to that
qualifying child. The identification rule under section
32(c)(3)(D) is effective for both 1997 and 1998.3
3 We previously discussed the identification rule and the
constitutionality of its retroactive amendment in Sutherland v.
(continued...)
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Last modified: May 25, 2011