Stephen Daryl Royal - Page 13

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          prescribes different percentages and amounts that are to be used            
          to calculate the credit depending on whether the eligible indi-             
          vidual has no qualifying children, one qualifying child, or two             
          or more qualifying children.  Respondent does not dispute that              
          petitioner’s daughters that he claimed as dependents in peti-               
          tioner’s 2002 return are qualifying children for purposes of the            
          earned income tax credit.                                                   
               For taxable year 2002, the earned income tax credit is                 
          completely phased out if an individual who has two qualifying               
          children and who is not married filing jointly9 has adjusted                
          gross income that equals or exceeds $33,178.  See sec.                      
          32(b)(1)(A) and (2); Rev. Proc. 2001-59, 2001-2 C.B. 623, 625-              
          626.  In petitioner’s 2002 return, petitioner claimed adjusted              
          gross income of $24,284.22.  We have held that petitioner must              
          include $25,940.49 in his gross income for 2002.  As a result,              
          petitioner’s adjusted gross income for that year is $50,224.71.             
               On the record before us, we find that petitioner has failed            
          to carry his burden of establishing that he is entitled for his             
          taxable year 2002 to the earned income tax credit.                          
               To reflect the foregoing and petitioner’s concession,                  

                                             Decision will be entered for             
                                        respondent.                                   

               9Petitioner claimed head of household filing status in                 
          petitioner’s 2002 return.                                                   





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