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therefore, petitioner is not entitled to claim earned income
credits for them. In any event, if petitioner were eligible for
an earned income credit for the children, his earned income
exceeds the phaseout amount of $11,610.
3. Child Tax Credit
For taxable year 2002, taxpayers are allowed to claim a tax
credit of $600 for each qualifying child. Sec. 24(a). The plain
language of section 24 establishes 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 stated supra, the Court has sustained respondent’s
determination that petitioner is not entitled to dependency
exemption deductions for the children. Thus, petitioner fails
the first prong of the test of section 24. The Court sustains
respondent’s determination regarding the section 24 child tax
credits.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
for respondent.
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