- 8 - an individual with respect to whom the taxpayer is allowed a deduction under section 151. Sec. 24(c)(1)(A). This Court has already concluded that petitioner is not entitled to dependency exemption deductions under section 151 for TE or TG. Accordingly, neither TE nor TG fits within the meaning of “qualifying child” as defined by section 24(c). The Court concludes that petitioner is not entitled to a child tax credit for either TE or TG. IV. 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 through a phaseout, and section 32(b) prescribes different percentages and amounts used to calculate the credit. The limitation amount is based on the amount of the taxpayer’s earned income and whether the taxpayer has no children, one qualifying child, or two or more qualifying children. To be eligible to claim an earned income credit with respect to a child, the taxpayer must establish that the child satisfies a relationship test, a residency test, and an age test. Sec. 32(c)(3)(A). Neither TE nor TG satisfy the relationship test as they are not the children, stepchildren, descendants, nieces or nephews, or foster children of petitioner. See sec. 32(c)(3)(B).Page: Previous 1 2 3 4 5 6 7 8 9 NextLast modified: November 10, 2007