- 4 - The taxpayer must have identified the child on his return under the identification rule of section 32(c)(3)(D) but need not have so identified the child to be an eligible individual with respect to that qualifying child. Sutherland v. Commissioner, T.C. Memo. 2001-8. Under section 32(c)(1)(C), the so-called tie-breaker rule, if there are two or more eligible individuals who could receive the EIC with respect to the same qualifying child, only the individual with the highest modified adjusted gross income, as defined under section 32(c)(5), for such taxable year shall be treated as the eligible individual with respect to the qualifying child. Sutherland v. Commissioner, supra; Jackson v. Commissioner, T.C. Memo. 1996-54. The term “eligible individual” also includes an individual without a qualifying child if the individual’s principal place of abode is in the United States for more than one-half of the taxable year, the individual has attained age 25 but not age 65, and the individual is not a dependent of another for whom a deduction is allowable under section 151. Sec. 32(c)(1)(A)(ii). An eligible individual without a qualifying child may be eligible for an EIC if the individual earned income or modified adjusted gross income does not exceed the completed phaseout amount, which was $10,200 for the 1999 taxable year. Sec. 32(a), (b), and (c)(1)(A)(ii); Rev. Proc. 98-61, 1998-2 C.B. 811, 814.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011