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household that constitutes the principal place of abode of a
dependent for whom the taxpayer is entitled to claim a deduction
under section 151. Sec. 2(b)(1)(A)(ii).
We have already held that petitioner is not entitled to the
dependency exemption deduction pursuant to section 151 with
respect to DS. It follows, therefore, that petitioner is not
entitled to claim head-of-household filing status. We sustain
respondent’s determination with respect to this issue.
3. Earned Income Credit
As previously stated, petitioner claimed an earned income
credit for taxable year 2003 with DS as the qualifying child. In
the notice of deficiency, respondent disallowed the earned income
credit.
Subject to certain limitations, an eligible individual is
allowed a credit which is calculated as a percentage of the
individual’s earned income. Sec. 32(a)(1). Earned income
includes wages. Sec. 32(c)(2)(A). Section 32(c)(1)(A)(i), in
pertinent part, defines an “eligible individual” as “any
individual who has a qualifying child for the taxable year”. A
“qualifying child” is one who satisfies a relationship test, a
residency test, and an age test. Sec. 32(c)(3). The pertinent
parts of section 32(c)(3) provide:
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Last modified: May 25, 2011