Manuella Cantrell - Page 10

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          6.  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.  A              
          qualifying child is one who satisfies a relationship test, a                
          residency test, and an age test.  Sec. 32(c)(3).  For the                   
          residency test, a qualifying child is an individual who has the             
          same principal place of abode as the taxpayer for more than one-            
          half of the taxable year.  Sec. 32(c)(3)(A)(ii).                            
               Brandon and James satisfy all three tests with respect to              
          petitioner, who had sole physical custody of them during 2001.              
          Accordingly, Brandon and James are qualifying children with                 
          respect to petitioner for 2001, and she is an eligible individual           
          under section 32(a).  We thus conclude that petitioner is                   
          entitled to the earned income credit for 2001, and we hold for              
          petitioner on this issue.5                                                  








               5  Respondent argues that Mr. Cantrell also claimed, in a              
          separate return, the earned income credit with respect to Brandon           
          and James during the 2001 taxable year.  His claiming of the                
          credit alone does not defeat petitioner’s entitlement to it as an           
          eligible individual.  See sec. 32(c)(1)(C).                                 





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