Case: U.S. Tax Court Denies Earned Income Tax Credit Claim for Disabled Relative (T.C. Memo)

The U.S. Tax Court held that the taxpayers were not entitled to claim an earned income tax credit (EITC) for a disabled relative, affirming the IRS’s deficiency determination. Taxpayers, a married couple, claimed an EITC on their 2022 tax return for the wife’s sister. The taxpayers argued that the sister, who lived with them for more than six months and was permanently disabled, qualified for the credit. However, the court found that they failed to provide adequate documentation to prove that the sister met the residency and disability requirements outlined in IRC §152(c)(3). The court found the testimony alone was ...