- 9 - 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).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011