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exemption deductions. Accordingly, petitioner is not entitled to
head-of-household filing status pursuant to section 2(b).
Petitioner's proper filing status for the years in issue is
single. Respondent is sustained on this issue.
3. Dependent Care Credits
The third issue for decision is whether petitioner is
entitled to the claimed child and dependent care credits pursuant
to section 21. Petitioner reported child and dependent care
expenses of $4,800 in both years in issue and claimed credits in
the amount of $1,008 and $960 for 1995 and 1996, respectively.
Respondent disallowed the credits due to (1) petitioner's lack of
a qualifying child(ren), and (2) petitioner's failure to
substantiate the claimed expenses.
Section 21(a) generally provides an allowance for a credit
against the tax to any individual, but only if a "qualifying
individual" resides in the household of the individual. See
Hopkins v. Commissioner, T.C. Memo. 1992-326. The term
"qualifying individual", under section 21(b), includes a
dependent of the taxpayer under age 13 with respect to whom the
taxpayer is entitled to a dependency exemption deduction under
section 151(c). The allowable credit, under section 21(b)(2),
generally is based upon employment-related expenses that are
incurred to enable the taxpayer to be gainfully employed,
including expenses incurred for the care of a qualifying
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