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place of abode as the taxpayer for more than one-half of the
taxable year as prescribed by section 32(c)(3)(A)(ii).
Petitioner conceded that RM and JM lived with Ms. Ovalle
during 2003. Therefore, they fail to meet the residence
requirement under section 32(c)(3)(A)(ii) and are not qualifying
children for purposes of claiming the earned income credit.
Although petitioner is not eligible to claim an earned
income credit under section 32(c)(1)(A)(i) for a qualifying
child, he may be an “eligible individual” under section
32(c)(1)(A)(ii) even if he does not have any qualifying children.
For 2003, a taxpayer is eligible under this subsection only if
his adjusted gross income was less than $11,230. Rev. Proc.
2002-70, 2002-2 C.B. 845. Petitioner’s adjusted gross income was
$12,472.
Accordingly, petitioner is not eligible for an earned income
credit. Respondent’s determination on this issue is sustained.
Additional Child Tax Credit
For 2003, petitioner did not claim a child tax credit, but
he claimed an “additional child tax credit” of $126 with JM as
the qualifying child. Respondent determined that petitioner is
not entitled to an additional child tax credit for 2003.
Section 24(a) authorizes a child tax credit with respect to
each qualifying child of the taxpayer. The term “qualifying
child” is defined in section 24(c). A “qualifying child” means
an individual with respect to whom the taxpayer is allowed a
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Last modified: May 25, 2011