In Frank Baker v. Commissioner, T.C. Memo 2014-57, the Tax Court disallowed a taxpayer’s Earned Income Credit, Child Tax Credit, and filling status as Head of Household because his fiancé’s two children were not “qualifying children” although he provided housing, food, and clothing for them.

Section 152(c) defines the term “qualifying child” and includes a list of conjunctive requirements, including a relationship requirement. The relationship requirement is satisfied if the individual is either a child of the taxpayer or a descendent of such a child, or a brother, sister, stepbrother, stepsister, or a descendant of such a relative.

Posted by Theodore H. Waggner, Esq., Associate Editor, Wealth Strategies Journal