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taxable year. Sec. 32 (c)(3). Petitioner’s children are
qualifying children under the requirements of section 32(c)(3).
However, even if a taxpayer meets all of the requirements
under section 32, she may not be eligible to claim the earned
income credit if there are two or more persons who are eligible
for the earned income credit with respect to the same qualifying
child. In that situation, only the individual with the highest
modified adjusted gross income shall be treated as an eligible
individual with respect to the qualifying child. Sec.
32(c)(1)(C). In the instant case, the children are also
qualifying children of petitioner’s parents.
On the other hand, for 1997 if petitioner and her children
lived with her former in-laws for most of the year, petitioner
failed to show that her adjusted gross income exceeded that of
her former in-laws. Therefore, petitioner has not met her burden
in this scenario.
In 1997 and 1998, petitioner’s parents had adjusted gross
income of $21,116 and $32,810, respectively. Petitioner’s
adjusted gross income for the years in issue was $14,622 and
$14,852, respectively. There is no dispute that petitioner’s
parents had the greater adjusted gross income during the years in
issue.
Because petitioner has failed to show that she is entitled
to the earned income credits for the years in issue, respondent
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Last modified: May 25, 2011