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Earned Income Credit
Petitioner claimed an earned income credit for 2003 with TH
as the “qualifying child”. 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).
The Court has already found that TH did not live with
petitioner for more than one-half of the year in 2003.
Therefore, TH fails to meet the residence requirement under
section 32(c)(3)(A)(ii) and is not a qualifying child for
purposes of claiming the earned income credit.
Although petitioner is not eligible to claim an earned
income credit under section 32(c)(1)(A)(i) for a qualifying
child, he may be an “eligible individual” under section
32(c)(1)(A)(ii) even if he does not have any qualifying children.
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Last modified: May 25, 2011