- 7 - percentages and amounts to be used in computing the earned income credit according to whether the eligible individual has no qualifying children, one qualifying child, or two or more qualifying children. Section 32(c)(1)(A)(i) provides that a taxpayer qualifies as an eligible individual if the taxpayer has a qualifying child for the tax year.8 Section 32(c)(3) defines “qualifying child” as an individual who bears a relationship to the taxpayer prescribed by section 32(c)(3)(B) (the relationship test), who meets the age requirements of section 32(c)(3)(C) (the age test), and who shares the same principal place of abode as the taxpayer for more than one-half of the taxable year as prescribed by section 32(c)(3)(A)(ii) (the residency test).9 The record demonstrates that S.L.B. satisfies the residency test and the age test. However, because she bears no relationship to petitioner, she fails to meet the relationship test of section 32(c)(3)(B)(i) and is not a qualified child of petitioner for purposes of the earned income credit. Section 32(c)(1)(A)(ii) provides that a taxpayer with no qualifying children may qualify as an eligible individual if the 8The Working Families Tax Relief Act of 2004, sec. 205(b)(1), 118 Stat. 1176, amended sec. 32(c)(1), effective for tax years beginning after Dec. 31, 2004. 9The Working Families Tax Relief Act of 2004, sec. 205(a), 118 Stat. 1176, amended sec. 32(c)(3), effective for tax years beginning after Dec. 31, 2004.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011