Andre L. Wilson - Page 10

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               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:                                          
               (3) Qualifying child.--                                                
                    (A) In general.--The term “qualifying child” means,               
               with respect to any taxpayer for any taxable year, an                  
                         (i) who bears a relationship to the taxpayer                 
                    described in subparagraph (B),                                    
                         (ii) who has the same principal place of abode as            
                    the taxpayer for more than one-half of such taxable               
                    year, and                                                         
                         (iii) who meets the age requirements of                      
                    subparagraph (C).                                                 
                    (B) Relationship test.--                                          
                         (i) In general.--An individual bears a                       
                    relationship to the taxpayer described in this                    
                    subparagraph if such individual is–-                              
                              (I) a son, daughter, stepson, or                        
                         stepdaughter, or descendant of any such                      
                              (II) a brother, sister, stepbrother, or                 
                         stepsister, or a descendant of any such                      
                         individual, who the taxpayer cares for as the                
                         taxpayer’s own child, or                                     

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Last modified: May 25, 2011