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Petitioner is not entitled to head of household filing
status because he is not entitled to claim dependency exemption
deductions for DR and AM.
Earned Income Credit
Section 32(a)(1) allows an eligible individual an earned
income credit against the individual’s income tax liability.
Section 32(a)(2) limits the credit allowed, and section 32(b)
prescribes different percentages and amounts used to calculate
the credit based on whether the eligible individual has no
qualifying children, one qualifying child, or two or more
qualifying children.
To be eligible to claim an earned income credit with respect
to a qualifying child, a taxpayer must establish, inter alia,
that the child bears a relationship to the taxpayer prescribed by
section 32(c)(3)(B), that the child meets the age requirements of
section 32(c)(3)(C), and that the child 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).
A cousin does not meet the relationship test under section
32(c)(3)(B). Therefore, DR is not a qualifying child for
purposes of the earned income credit.
In order for a niece to meet the relationship requirement of
section 32(c)(3)(B), the taxpayer must show that he cared for the
niece as his own child. Sec. 32(c)(3)(B)(i)(II).
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Last modified: May 25, 2011