Rafael Manzueta - Page 7

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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           
               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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