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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.
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Last modified: May 25, 2011