Pradel Lucas - Page 2




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               This case was submitted fully stipulated.  The stipulation             
          of facts and the attached exhibits are incorporated herein by               
          this reference.  Petitioner resided in Immokalee, Florida, when             
          the petition in this case was filed.                                        
               During 1997, petitioner was incarcerated at a penal                    
          institution.  Petitioner listed his occupation as beggar on his             
          1997 Federal income tax return.  In 1997, petitioner received               
          money from family and friends in the amount of $805.  The family            
          and friends who provided the money to petitioner had no                     
          expectation of repayment.  In 1997, petitioner did not earn any             
          income working for the prison.                                              
               Petitioner reported income from begging in the amount of               
          $805 on his 1997 Federal income tax return and claimed an earned            
          income credit in the amount of $63.                                         
               Petitioner is not entitled to the earned income credit he              
          claimed on his 1997 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.  See             
          sec. 32(a).  Earned income includes wages, salaries, tips, and              
          other employee compensation.  See sec. 32(c)(2)(A)(i).                      
               The money petitioner received from begging does not meet the           
          definition of earned income provided by section 32.  Rather, the            
          money petitioner received from his family and friends was                   






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