Tax Court rejects EITC claim for sister-in-law due to missing age and residency proof
Graham v. Commissioner, T.C. Memo. 2025-116, No. 4044-24., 2025 BL 406408, Court Opinion
The court denied the couple’s earned income tax credit claim because they did not prove that the sister-in-law met the age or disability rules or lived with them long enough to qualify as a dependent.
Holding
The Tax Court held that the taxpayers failed to show their sister-in-law met the residency and age requirements to qualify as a “qualifying child” for purposes of the earned income tax credit.
Why It Matters
The EITC requires strict proof that a claimed individual meets the dependency tests.
Adults over the statutory age limit qualify only if they meet the definition of permanent and total disability.
Unsupported testimony is not sufficient to establish residency or disability.
Missing documentation can independently defeat an EITC claim even when the taxpayer’s narrative is credible.
Timeline
2022: Taxpayers claimed the earned income credit for the wife’s 64-year-old sister.
2023: IRS issued a notice determining a $3,686 deficiency.
March 2024: Taxpayers filed a timely petition in the Tax …
