John S. Turay - Page 10




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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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