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petitioner for assistance with their homework when needed.
Petitioner and his mother shared responsibility in the discipline
of his younger siblings. His mother established the rules in the
household, such as setting curfews, and relied on petitioner to
enforce the rules.
Petitioner reported income of $14,101 on his 1999 Federal
income tax return. His income consisted entirely of wages.
Petitioner claimed an earned income credit computed by treating
two of his siblings as qualifying children. In the notice of
deficiency, respondent disallowed the earned income credit.
Discussion
Section 32(a)(1) allows an eligible individual an earned
income credit against the individual’s income tax liability. An
eligible individual is any individual who either: (1) Has a
qualifying child as defined by section 32(c)(3), or (2) has no
qualifying child and meets the requirements of section
32(c)(1)(A)(ii). Sec. 32(c)(1)(A).
For a taxpayer to be entitled to an earned income credit for
a qualifying child, the qualifying child must satisfy a residency
test, an age test, and a relationship test. Sec. 32(c)(3)(A).
There is no dispute here that petitioner’s siblings were minors
and students living in the same residence with him and that the
residency and age tests are satisfied. The relationship test can
be satisfied if the individual is an “eligible foster child” of
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Last modified: May 25, 2011