Darrell D. Reed - Page 8




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          taxpayer is entitled to a deduction of the taxable year for such            
          person under section 151.                                                   
               Because we held above that petitioner is not entitled to a             
          deduction for the children under the provisions of sections 151             
          and 152, petitioner is not entitled to head of household status.1           
          Therefore, respondent is sustained on this issue.                           
          Earned Income Credit                                                        
               The relevant parts of section 32 provide that an individual            
          is eligible for the earned income credit if the individual has a            
          “qualifying child”.  A qualifying child is one who satisfies a              
          relationship test, a residency test, an age test, and an                    
          identification requirement.  See sec. 32(c)(3).                             
               Under the relationship test, the qualifying child must be a            
          son or daughter, a stepson or stepdaughter, or a foster child of            
          the taxpayer.  See sec. 32(c)(3)(A).  On his returns, petitioner            
          claimed the children as stepdaughters.  We disagree with                    
          petitioner’s characterization.  Petitioner was never married to             
          the children’s mother, nor was he ever recognized as their legal            
          guardian.                                                                   
               To be considered an “eligible foster child”, petitioner must           


               1    A taxpayer will not be considered to be a head of                 
          household by reason of an individual who would not be a dependent           
          for the taxable year but for sec. 152(a)(9).  See sec.                      
          2(b)(3)(B)(i).  Thus, even if we had held that petitioner is                
          entitled to dependency exemption deductions for Mr. Elms,                   
          petitioner would still not qualify as a head of household.                  




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