Rafael Manzueta - Page 9

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          remaining child tax credit available or 10 percent of the amount            
          by which the taxpayer’s earned income exceeds $10,500.  Sec.                
          24(d)(1)(A) and (B), (d)(3); Rev. Proc. 2002-70, sec. 3.04, 2002-           
          2 C.B. at 847.  The refundable and nonrefundable portions of the            
          child tax credit cannot exceed the total allowable amount of the            
               At trial, respondent conceded that petitioner was allowed to           
          claim a dependency exemption deduction with respect to JM for               
          2003.  JM attained the age of 10 in 2003 and is petitioner’s son.           
          Therefore, JM is a qualifying child within the meaning of section           
          24(c), which entitles petitioner to claim a child tax credit.               
               For 2003, the child tax credit is $1,000 per qualifying                
          child.  Sec. 24(a)(2); Jobs and Growth Tax Relief Reconciliation            
          Act of 2003, Pub. L. 108-27, sec. 101(a), 117 Stat. 753.                    
          Petitioner’s Federal tax liability for 2003 is $161.  This is               
          based on the Court’s finding that petitioner: (1) Has adjusted              
          gross income of $12,472; (2) is entitled to exemptions of $6,100            
          for himself and his dependent JM; and (3) is entitled to a                  
          standard deduction of $4,750 for “single” filing status.                    
          Petitioner’s taxable income is $1,622 ($12,472 - $6,100 - $4,750            
          = $1,622).  Petitioner is allowed to claim a child tax credit in            
          the amount of $161, equal to the amount of his Federal income tax           
          liability for 2003.                                                         
               Since petitioner’s child tax credit exceeds his Federal                
          income tax liability for 2003, he is entitled to a refundable               

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