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Sec. 32(c)(3)(B)(i). An eligible foster child1 is defined as an
individual who the taxpayer cares for as his or her own child and
who has the same principal place of abode as the taxpayer for the
entire taxable year in issue. See sec. 32(c)(3)(B)(iii).
An individual satisfies the age test if he or she is under age
19 at the end of the taxable year, is a full-time student under age
24 at the end of the taxable year, or is permanently and totally
disabled during the taxable year. See sec. 32(c)(3)(C).
On the basis of the stipulated record, we conclude that for
1997 Christina and Mitchell were both petitioner’s and Mr. Pancake’s
qualifying children for purposes of the earned income credit. Thus,
both petitioner and Mr. Pancake are eligible individuals (under
section 32(a)(1)) for purposes of claiming the earned income credit.
Section 32(c)(1)(C) provides a tie-breaker rule where there are
two or more eligible individuals with respect to the same qualifying
child for the same taxable year (as is the case here):
If 2 or more individuals would (but for this
subparagraph and after application of subparagraph (B))
be treated as eligible individuals with respect to the
same qualifying child for taxable years beginning in the
same calendar year, only the individual with the highest
modified adjusted gross income for such taxable years
shall be treated as an eligible individual with respect
to such qualifying child. [Emphasis added.]
1 Although Congress recently amended the definition of an
eligible foster child, see Ticket to Work and Work Incentives
Improvement Act of 1999, Pub. L. 106-170, sec. 412, 113 Stat.
1860, 1917, the amended definition does not apply herein because
it is effective only for tax years beginning after Dec. 31, 1999.
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