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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 1996, petitioner was incarcerated at a penal
institution. Petitioner listed his occupation as beggar on his
1996 Federal income tax return. In 1996, petitioner received
money from family and friends in the amount of $720. The family
and friends who provided the money to petitioner had no
expectation of repayment. In 1996, petitioner did not earn any
income working for the prison.
Petitioner reported income from begging in the amount of
$720 on his 1996 Federal income tax return and claimed an earned
income credit in the amount of $55.
Petitioner is not entitled to the earned income credit he
claimed on his 1996 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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