                     T.C. Summary Opinion 2011-89



                        UNITED STATES TAX COURT



                     BADRI N. ABDI, Petitioner v.
             COMMISSIONER OF INTERNAL REVENUE, Respondent



        Docket No. 10077-10S.            Filed July 13, 2011.



        Badri N. Abdi, pro se.

        Anna A. Long, for respondent.



     JACOBS, Judge:     This case was heard pursuant to the

provisions of section 7463 of the Internal Revenue Code in effect

when the petition was filed.     Pursuant to section 7463(b), the

decision to be entered is not reviewable by any other court, and

this opinion shall not be treated as precedent for any other

case.     Unless otherwise indicated, all section references are to
                               - 2 -

the Internal Revenue Code in effect for 2008, and all Rule

references are to the Tax Court Rules of Practice and Procedure.

     Respondent determined a deficiency of $3,332 in petitioner’s

Federal income tax for 2008.   The issues for decision are:    (1)

Whether petitioner is entitled to a dependency exemption

deduction for his minor sister, FM;1 (2) whether petitioner is

entitled to an earned income tax credit; and (3) whether

petitioner is entitled to a child tax credit.

                            Background

     Some of the facts have been stipulated, and they are so

found.   We incorporate by reference the parties’ stipulation of

facts and accompanying exhibits.    At the time he filed his

petition, petitioner resided in California.

     Petitioner was 21 in 2008.    He lived with his mother and

three siblings--his 11-year-old sister, FM, and two brothers,

each of whom was younger than FM.    Petitioner’s mother did not

claim petitioner as a dependent, and the parties stipulated that

petitioner’s mother filed a Federal income tax return for 2008 on

which she claimed petitioner’s two brothers as dependents.

     During 2008 Petitioner was a student at San Diego State

University and worked three jobs--as a cashier and jeweler at




     1
      The Court refers to minors by their initials.   See Rule
27(a)(3).
                               - 3 -

Mervyns, a retail store; as a caretaker for his grandmother;2 and

as a telemarketer for the San Diego State University Foundation.

After cashing each paycheck, petitioner would give most of the

money to his mother.   Petitioner paid for the family’s cable

television and Internet subscriptions and bought clothes and

games for FM.   Petitioner retained only a limited amount of money

for himself to purchase “some clothes”, to occasionally eat out,

and for entertainment.   Petitioner did not own an automobile.

Either his mother or his friends would drive him to school and to

his workplaces.

      Petitioner timely filed his 2008 Federal income tax return.

On the return petitioner claimed:     (1) A dependency exemption

deduction with respect to FM, (2) an earned income tax credit

of $2,917, and (3) a child tax credit of $276.

                            Discussion

I.   Dependency Exemption Deduction

      Section 151(c) allows a taxpayer to deduct an additional

“exemption amount for each individual who is a dependent (as

defined in section 152) of the taxpayer for the taxable year.”

As pertinent hereto, section 152(a)(1) defines a “dependent” as a

“qualifying child”, sec. 152(a)(1), or a “qualifying relative”,




      2
      Petitioner’s grandmother received governmental assistance
which enabled her to pay for an aide.
                                - 4 -

sec. 152(a)(2), subject to certain exceptions found in section

152(b) not herein applicable.

     Section 152(c)(1) defines the term “qualifying child” to

mean an individual (the presumptive qualifying child) who (A)

bears a relationship to the taxpayer as described in paragraph

(2) of section 152(c) (the relationship test), (B) who has the

same principal place of abode as the taxpayer for more than one-

half of the taxable year (the principal place of abode test), (C)

who meets the age requirement of paragraph (3) of section 152(c)

(the age test), and (D) who has not provided over one-half of

his/her own support for the calendar year in which the taxable

year of the taxpayer begins (the self-support test).

     To satisfy the relationship test, section 152(c)(2) requires

the relationship between the presumptive qualifying child and the

taxpayer to be that of either (A) the taxpayer’s child or a

descendent of the taxpayer’s child, or (B) a brother, sister,

stepbrother, or stepsister of the taxpayer or a descendant of any

such relative.   One of the conditions satisfying the age

test is that the presumptive qualifying child be under age 19 as

of the close of the calendar year in which the taxable year of

the taxpayer begins.

     FM meets all four requirements of section 152(c)(1) and

therefore is petitioner’s qualifying child.   First, FM is

petitioner’s sister, thus satisfying the relationship test.
                                 - 5 -

Second, petitioner and FM had the same principal place of abode

throughout 2008, thus satisfying the principal place of abode

test.     Third, FM was 11 years old in 2008, thus satisfying the

age test.     Fourth, and finally, the record establishes that FM

did not provide more than one-half of her own support for 2008,

thus satisfying the self-support test.3

        Even though FM is petitioner’s qualifying child, FM is also

the qualifying child of petitioner’s mother.     Thus we are forced

to consider the special rule set forth in section 152(c)(4)

relating to two or more taxpayers claiming the same individual as

a qualifying child.4

        Except as provided in subparagraph (B), if (but for this
        paragraph) an individual may be and is claimed as a
        qualifying child by 2 or more taxpayers for a taxable year
        beginning in the same calendar year, such individual shall
        be treated as the qualifying child of the taxpayer who is--

                  (i) a parent of the individual, or

                   (ii) if clause (i) does not apply, the taxpayer
             with the highest adjusted gross income for such taxable
             year.

Thus, in the case where a parent and another relative each claim

an individual as a qualifying child for the same tax year,


     3
      For tax years beginning before Jan. 1, 2005, sec. 152(a)
provided that a “dependent” meant certain individuals, including
a taxpayer’s sister, over half of whose support, for the calendar
year in which the taxpayer’s taxable year begins, was received
from the taxpayer. This support requirement is not part of the
statutory test for “dependent” when referring to a qualified
child for 2008.
     4
      A dependency exemption for FM may be allowed to only one
taxpayer.
                                 - 6 -

section 152(c)(4)(A)(i) provides that the individual be treated

as the qualifying child of the parent.    However, as herein

pertinent, this rule comes into play only if petitioner’s mother

had claimed FM as her qualifying child.

      The record shows that petitioner and his mother carefully

arranged their tax affairs; petitioner’s mother claimed her other

two sons as her qualifying children and petitioner claimed FM.5

Therefore, we believe and thus find that petitioner’s mother did

not claim FM as a dependent for 2008.

      Because FM is petitioner’s qualifying child for 2008,

petitioner is entitled to the claimed dependency exemption

deduction for FM for 2008.6

II.   Earned Income Tax Credit

      Section 32(a)(1) permits an eligible individual to receive

an earned income credit against his/her tax liability.    As

pertinent here, the term “eligible individual” includes any

individual who has a qualifying child for the taxable year.    Sec.



      5
      For tax years beginning after Dec. 31, 2008, the statute
was amended to provide that if an individual may be claimed as a
qualifying child by two or more taxpayers for a taxable year
beginning in the same calendar year, such individual shall be
treated as the qualifying child of the taxpayer who is the parent
of the individual. Thus, the statutory amendment removed the
requirement that the child “may be and is claimed” by two or more
taxpayers. Fostering Connections to Success and Increasing
Adoptions Act of 2008, Pub. L. 110-351, sec. 501(c)(2)(B)(i), 122
Stat. 3980.
      6
      Because FM is petitioner’s qualifying child, we need not
determine whether FM is petitioner’s qualifying relative.
                                   - 7 -

32(c)(1)(A)(i).    In general, the term “qualifying child” means a

qualifying child of the taxpayer (as defined in section 152(c),

determined without regard to section 152(c)(1)(D) (regarding the

amount of support) and section 152(e) (regarding special rules

for divorced parents).     Sec. 32(c)(3)(A).

       As found supra p. 6, FM is petitioner’s qualifying child.

Accordingly, petitioner is entitled to an earned income tax

credit for 2008.

III.    Child Tax Credit

       Subject to certain limitations based on adjusted gross

income, section 24(a) allows a credit against his/her tax

liability with respect to each qualifying child of the taxpayer.

Section 24(c)(1) defines the term “qualifying child” as a

“qualifying child of the taxpayer (as defined in section 152(c))

who has not attained the age of 17.”

       FM is petitioner’s qualifying child.       Therefore, petitioner

is entitled to the section 24(a) child tax credit with respect to

FM.

       To reflect the foregoing,


                                                Decision will be entered

                                           for petitioner.
