- 10 -
residency test, and an age test. Sec. 32(c)(3). For the tax
year in issue, the residency test required a qualifying child to
have “the same principal place of abode as the taxpayer for more
than one-half of such taxable year”. Sec. 32(c)(3)(A)(ii). As
previously stated, the record shows that CME and CJE did not live
with petitioner for more than one-half of the taxable year 2002.
We find that CME and CJE fail the residency test of section
32(c)(3)(A)(ii); therefore, we need not, and do not, decide
whether they satisfy the relationship test or age test under
section 32(c)(3). Thus, respondent is sustained on this issue.
4. Child Tax Credits
Finally, we consider the child tax credits. A taxpayer may
be entitled to a credit against tax with respect to each
“qualifying child”. Sec. 24(a) The plain language of section 24
established a three-pronged test to determine whether a taxpayer
has a qualifying child. If one of the qualifications is not met,
the claimed child tax credit must be disallowed. The first
element of the three-pronged test requires that a taxpayer must
have been allowed a deduction for that child under section 151.
Sec. 24(c)(1)(A).
As previously stated, the Court has sustained respondent’s
determination that petitioner is not entitled to dependency
exemption deductions for CME and CJE. Thus, petitioner fails the
first prong of the test of section 24. The Court sustains
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011