- 7 -
4. Earned Income Credit
Section 32(a) provides for an earned income credit in the
case of an eligible individual. Section 32(c)(1)(A)(i), in
pertinent part, defines an “eligible individual” as any
individual who has a qualifying child for the taxable year.2 A
qualifying child is one who satisfies a relationship test, a
residency test, and an age test. Sec. 32(c)(3). Erica and Ivan
satisfy all three tests, and they are qualifying children with
respect to petitioner.
However, they are also qualifying children with respect to
Ms. Rodriguez. Under such circumstances, for taxable years
beginning on or before December 31, 2001, section 32(c)(1)(C)
provides:
(C) 2 or more eligible individuals.–-If 2 or more
individuals would * * * be treated as eligible
individuals with respect to the same qualifying child
for taxable years beginning the same calendar year,
only the individual with the highest modified adjusted
gross income for such taxable years shall be treated as
an eligible individual with respect to such qualifying
child.
Section 32(c)(5) defines the term “modified adjusted gross
2 Petitioner could also be an eligible individual, even if
we were to find that he did not have any qualifying children.
See sec. 32(c)(1)(A)(ii). In such a situation, however,
petitioner would still not be entitled to the earned income
credit for 2001 because his total income of $11,000 exceeded the
“completed phaseout amount” of $10,710. See Rev. Proc. 2001-13,
sec. 3.03(1), 2001-1 C.B. 337, 339.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011