- 7 - For the taxable year 1998, taxpayers are allowed to claim a tax credit of $400 for each qualifying child. Sec. 24(a). Section 24(c)(1) defines a “qualifying child” as any individual if: (A) the taxpayer is allowed a deduction under section 151 with respect to such individual for the taxable year, (B) such individual has not attained the age of 17 as of the close of the calendar year in which the taxable year of the taxpayer begins, and (C) such individual bears a relationship to the taxpayer described in section 32(c)(3)(B). [Emphasis added.] The plain language of section 24 establishes a three-pronged test to determine whether a taxpayer has a qualifying child. In effect, if one of the qualifications is not met, the claimed child tax credit must be disallowed. The first element of the three-pronged test requires that a taxpayer must have been allowed a deduction for that child under section 151. Sec. 24(c)(1)(A). Respondent determined that petitioner is not entitled to section 151 dependency exemption deductions for Shayla and Kevin for 1998. The Court has held that respondent’s determination regarding the section 151 deductions are valid. That holding is dispositive of this issue, and, as a result, the Court sustains respondent’s determination regarding the section 24 child taxPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011