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On his 1998 Federal income tax return, petitioner claimed an
earned income credit under section 32(a) in the amount of $1,861.
The entire amount of the credit was disallowed in the notice of
deficiency on the ground that the child did not reside with
petitioner during the year in question as required by section
32(c)(3)(A)(ii). Petitioner’s concession of the head-of-
household issue confirms that the child did not live with
petitioner more than one-half of the taxable year as required by
section 32(c)(3)(A)(ii).
Respondent agrees that, under section 32(c)(1)(A)(ii), a
taxpayer is entitled to the earned income credit if such taxpayer
does not have a qualifying child (as is the situation here) but
satisfies the following conditions:
(1) The taxpayer’s principal place of abode was in the
United States for more than one-half of the taxable year;
(2) the taxpayer had attained age 25 and not attained age 65
on or before the close of the taxable year; and
(3) the taxpayer was not a dependent for whom a deduction is
allowable under section 151 to another taxpayer for the taxable
year at issue. Sec. 32(c)(1)(A)(ii)(I), (II), and (III).
While petitioner in this case satisfies these requirements,
there is a further limitation petitioner does not satisfy.
Section 32(b) provides a phaseout of the credit where the
taxpayer’s adjusted gross income exceeds certain prescribed
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Last modified: May 25, 2011