Austin Eugene Chandler, Jr. - Page 5




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               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.                      






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