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3. Earned Income Credit
Subject to various conditions and limitations, an eligible
individual is entitled to an earned income credit. Sec. 32(a).
Petitioner was an eligible individual within the meaning of the
applicable statute. Sec. 32(c)(1)(A)(i) and (ii). Nevertheless,
because of the amount of his income, he is not entitled to an
earned income credit for 1997 unless at least one of his nephews
was a qualifying child with respect to him for that year. Sec.
32(b).
On his 1997 return, petitioner claimed an earned income
credit computed by treating two of his nephews as qualifying
children. Among other requirements, to be treated as an eligible
child of a taxpayer, the child must be: (1) A son or daughter
of the taxpayer; (2) a descendant of a son or daughter of the
taxpayer; (3) a stepson or stepdaughter of the taxpayer; or (4)
an eligible foster child of the taxpayer. Sec. 32(c)(3)(B)(i).
Petitioner’s nephews obviously are not his children, descendants
of his children, or his stepchildren. Furthermore, they were not
his eligible foster children because, although he generously
contributed towards their support, he did not care for them as
his own children. Sec. 32(c)(3)(B)(iii). According to school
records, petitioner’s mother, rather than petitioner, was the
guardian/custodian of petitioner’s nephews during the year in
issue. It follows that respondent’s determination that
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Last modified: May 25, 2011