Cyrus Bartholomew Dazzel - Page 9

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          pertinent part, defines an “eligible individual” as any                     
          individual who has a qualifying child for the taxable year.                 
              The Court has determined that the claimed dependents do not             
          meet the definitional requirements of a qualifying individual.              
          Sec. 32(c)(3).  As a result, petitioner is not entitled to an               
          earned income credit for 2003.  Thus, respondent’s determination            
          that petitioner is not entitled to an earned income credit is               
          sustained.                                                                  
          IV.  Child Tax Credit                                                       
              We next consider the child tax credit.  A taxpayer may be               
          entitled to a credit against tax with respect to 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 tine            
          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 accordingly           
          sustains respondent’s determination regarding the child tax                 
          credit under section 24.                                                    






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