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Petitioner testified that, in 2003, DP and EW spent weekends
and summer vacation with him. This amounts to less than one-half
of the taxable year. Therefore, DP and EW fail to meet the
residence requirement under section 32(c)(3)(A)(ii) and are not
qualifying children 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.
For 2003, a taxpayer is eligible under this section only if his
adjusted gross income was less than $11,230. Rev. Proc. 2002-70,
sec. 3.06, 2002-2 C.B. 845, 847. Petitioner’s adjusted gross
income was $15,662.
Accordingly, petitioner is not eligible for an earned income
credit. Respondent’s determination on this issue is sustained.
Child Tax Credit and Additional Child Tax Credit
For 2003, petitioner claimed a child tax credit of $176 and
an additional child tax credit of $337 with DP and EW as the
qualifying children. Respondent determined that petitioner is
not entitled to either credit.
Section 24(a) authorizes a child tax credit with respect to
each qualifying child of the taxpayer. The term “qualifying
child” is defined in section 24(c). A “qualifying child” means
an individual with respect to whom the taxpayer is allowed a
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Last modified: May 25, 2011