- 15 -
The residency test requires that the qualifying child have
the same principal place of abode within the United States as the
taxpayer for more than one-half of the taxable year. Sec.
32(c)(3)(A)(ii), (E). Petitioner did not have the same principal
place of abode as KGT or JTW; thus, neither is a qualifying
child.
Nonetheless, subject to phaseout limitations, an individual
who does not have any qualifying children may be eligible for an
earned income credit under section 32(a) if: (1) The
individual’s principal place of abode is in the United States;
(2) the individual, or his spouse, has attained the age of 25 but
not the age of 65 at the close of the taxable year; and (3) the
individual is not a dependent for whom a deduction is allowed
under section 151. Sec. 32(c)(1)(A).
Petitioner’s earned income for 2003 was $16,698. Although
petitioner satisfies the eligibility requirements, the phaseout
limitation prevents the receipt of any earned income credit. The
earned income credit for an individual without any qualifying
children is completely phased out in tax year 2003 when an
individual’s earned income exceeds $11,230. Rev. Proc. 2002-70,
2002-2 C.B. 845, 848; see IRS Pub. 596, Earned Income Credit
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011