- 5 -
income. Sec. 32(a)(1). Section 32(a)(2) and (b) limit the
credit allowed based on whether the eligible individual has no
qualifying children, one qualifying child, or two or more
qualifying children.
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 includes a son
or daughter of the taxpayer who has the “same principal place of
abode as the taxpayer for more than one-half of such taxable
year”. Sec. 32(c)(3)(A)(ii) and (B)(i)(I).
Ms. Johnson testified that LJ lived with her during 2002 and
that they did not live with petitioner. Petitioner has failed to
prove that LJ lived with him; therefore, the Court finds that LJ
is not a qualifying child under section 32(c)(3)(A)(ii).
A taxpayer with no qualifying children may be eligible for
the earned income credit subject to, among other things, the
phaseout limitations of section 32(a)(2). Merriweather v.
Commissioner, T.C. Memo. 2002-226; Briggsdaniels v. Commissioner,
T.C. Memo. 2001-321. For 2002, the earned income credit is
completely phased out under section 32(a) for a taxpayer with no
qualifying children if the taxpayer's earned income and adjusted
gross income is more than $5,280 (or $6,280 for married
individuals filing jointly). See sec. 32(a) and (b).
Petitioner's earned income for 2002 was $14,605.
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011