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physical whereabouts of children when the terms of the custody
order provides for the primary residence is not necessary. We
decline the invitation to count days and hours of physical
custody in the context of a functioning cooperative joint custody
arrangement. Petitioner was not the custodial parent for 2002
under section 152(e)(1). See Wooten v. Commissioner, T.C. Memo.
2000-54.
Child Tax Credits
Section 24(a) provides that a taxpayer may claim a credit
for “each qualifying child”. A qualifying child is defined as an
individual if “the taxpayer is allowed a deduction under section
151 with respect to such individual for the taxable year”. Sec.
24(c)(1)(A). Petitioners are not entitled to claim a dependency
exemption deduction under section 151; therefore, they are also
not entitled to the child tax credits. Respondent’s disallowance
of the child tax credits is sustained.
Earned Income Credit
Respondent disallowed the earned income credit claimed for
petitioner’s child.
Subject to limitations, an eligible individual is allowed a
credit which is calculated as a percentage of the individual’s
earned income. Sec. 32(a)(1). An eligible individual is an
individual who has a qualifying child for the taxable year. Sec.
32(c)(1)(A)(i). A qualifying child is one who has the same
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