Curtis D. Custis - Page 8

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          deduction for AC pursuant to section 151, it follows that                   
          petitioner is not entitled to head of household filing status.              
          Thus, respondent’s adjustment to petitioner’s filing status is              
          3.   Earned Income Tax Credit                                               
               Petitioner claimed an earned income credit on the basis that           
          he had two qualifying children.  Subject to certain limitations,            
          section 32(a) provides for an earned income credit for an                   
          eligible individual.  Section 32(c)(1)(A)(i) defines an “eligible           
          individual” as “any individual who has a qualifying child for the           
          taxable year”.5  In this context, a qualifying child is one who             
          satisfies a relationship test, a residency test, an age test, and           
          an identification requirement.  See sec. 32(c)(3).  To satisfy              
          the residency test, the qualifying child must have the same                 
          principal place of abode as the taxpayer for more than one-half             
          of the taxable year in which the credit is claimed.  See sec.               
               Because petitioner did not establish that either his son or            
          his niece had the same principal place of abode for more than               
          one-half of the taxable year in 2003, it follows that petitioner            

               5 Sec. 32(c)(1)(A)(ii) provides that a taxpayer can also be            
          an “eligible individual” without a qualifying child.  Petitioner            
          does not meet the requirements for a credit as an eligible                  
          individual under sec. 32(c)(1)(A)(ii) because his income exceeded           
          the completed phaseout amount prescribed by sec. 32(b) and Rev.             
          Proc. 2002-70, sec. 3.06, 2002-2 C.B. 845, 848, for the year                

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