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requirements, the definition of a qualifying child for purposes
of section 32 includes a child of a taxpayer who has the same
principal place of abode as the taxpayer for more than half of
the taxable year. Sec. 32(c)(3)(A)(ii). Petitioner has failed
to show that either of his children had the same principal place
of abode as petitioner for more than half of 2000. Petitioner
therefore is not entitled to an earned income credit in 2000
based on Lamani and LaKim as qualifying children. Id.
Petitioner, however, is nevertheless entitled to a smaller
earned income credit than that claimed. Petitioner is an
eligible individual, and he earned $8,701 during the year in
issue. Respondent argues in his trial memorandum that taxpayers
without qualifying children who earn in excess of $5,280 are not
entitled to an earned income credit. This is incorrect.
According to the tables prescribed by the Secretary pursuant to
section 32(f), the lowest income amount at which the earned
income credit is no longer available in this situation is $10,380
for taxable year 2000. See also sec. 32(a), (b), (j). The
amount of the deficiency resulting from the correct amount of the
earned income credit will be calculated pursuant to a Rule 155
computation.
Reviewed and adopted as the report of the Small Tax Case
Division.
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Last modified: May 25, 2011