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Under section 32(c)(1)(C), the so-called tie breaker rule,
if there are two or more eligible individuals who could receive
the EIC with respect to that qualifying child, only the
individual with the highest modified adjusted gross income for
such taxable years shall be treated as the eligible individual
with respect to the qualifying child. Sutherland v.
Commissioner, T.C. Memo. 2001-8; Jackson v. Commissioner, T.C.
Memo. 1996-54.
Ayla had the same principal place of abode as both
petitioner and the Stephans for more than one-half of 1997 and
1998. Ayla is petitioner’s daughter, and she is also a
descendant of the Stephans’ daughter. Ayla had not attained 19
by the close of either 1997 or 1998. Ayla could be a qualifying
child for either petitioner or the Stephans, and either
petitioner or the Stephans could be the qualifying individual or
individuals. The Stephans, filing jointly, reported gross
income in the amount of $60,485 for 1997 and $69,537 for 1998.
The Stephans’ modified adjusted gross income for both 1997 and
1998 was higher than petitioner’s. Accordingly, upon the
application of the tie breaker rule, the Stephans are treated as
3(...continued)
Commissioner, T.C. Memo. 2001-8. Also, we discussed the issue as
specific to petitioner for the taxable years 1995 and 1996 in
another summary opinion.
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Last modified: May 25, 2011