- 2 -
All Rule references are to the Tax Court Rules of Practice and
Procedure.
The sole issue for determination is whether petitioner is
entitled to the earned income credit for the tax year 1994.
This case was submitted fully stipulated. The stipulation
of facts and the attached exhibits are incorporated herein by
this reference. Petitioner resided in Monroe, Washington, when
the petition in this case was filed.
During 1994, petitioner was incarcerated at the Washington
State Reformatory, a penal institution. During his
incarceration, petitioner was employed by Washington Marketing
Group, Inc. (WMG), as a telemarketer. For his services,
petitioner received wages from WMG in the amount of $5,054.10.
Petitioner included this amount in his 1994 Federal income tax
return and claimed an earned income credit in the amount of $300.
Petitioner is not entitled to the earned income tax credit
he claimed on his 1994 tax return. An eligible individual is
allowed an earned income credit for the taxable year in an amount
equal to the credit percentage of so much of the taxpayer's
earned income as does not exceed the earned income amount. Sec.
32(a). Earned income includes wages, salaries, tips, and other
employee compensation. Sec. 32(c)(2)(A)(i). However, earned
income does not include any amount received for services provided
by an individual while the individual is an inmate at a penal
institution. Sec. 32(c)(2)(B)(iv). The wages reported by
Page: Previous 1 2 3 Next
Last modified: May 25, 2011