- 6 - 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 thatPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011