- 7 - On the basis of the record before us, we cannot find that petitioner has established the total support costs for JM during taxable year 2002, nor has she established that she provided more than half of that amount. Respondent’s determination on this issue is sustained. 2. Earned Income Credit As previously stated, petitioner claimed an earned income credit for taxable year 2002 with AM and JM as the qualifying children. In the notice of deficiency, respondent disallowed the portion of the earned income credit with respect to JM as the qualifying child. 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 individual-- (i) who bears a relationship to the taxpayer described in subparagraph (B),Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011