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(I) is a brother, sister, stepbrother, or
stepsister of the taxpayer (or a descendant
of any such relative) or is placed with the
taxpayer by an authorized placement agency,
(II) the taxpayer cares for as the
taxpayer’s own child, and
(III) has the same principal place of
abode as the taxpayer for the taxpayer’s
entire taxable year.
It is clear that Manuel was neither a child, stepchild or
descendant of petitioner. Thus, we look to whether Manuel would
qualify as an eligible foster child. In this connection,
petitioner cared for Manuel as his own child, and Manuel lived
with petitioner for the entire year. However, there is nothing
in this record indicating that the provision of section
32(c)(3)(B)(iii)(I) has been satisfied, that Manuel was placed
with the petitioner by an authorized placement agency. The
record is silent on this matter. Since the relationship test has
not been satisfied, we conclude that petitioner did not have a
qualifying child for purpose of an earned income credit, and
respondent’s determination is sustained on this issue.
We next consider the child tax credit. A taxpayer may be
entitled to a credit against tax with respect to each “qualifying
child”. Sec. 24(a). Among other requirements, section 24(c)(1)
(C) provides that “such individual bears a relationship to the
taxpayer described in section 32(c)(3)(B).” Since we have
concluded for purposes of the earned income credit that Manuel
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Last modified: May 25, 2011