- 7 - 2 Mrs. Cotton reported Shaquita Douglas as her foster child. 3 Mrs. Cotton reported Starlesha Cotton as her niece. 4 Mrs. Cotton reported Kevin Cotton as her nephew. Mrs. Cotton claimed earned credits in the amounts of $640 and $1,152 in 1994 and 1996, respectively. Mr. Cotton claimed the following deductions: 1994 1995 1996 Medical expenses $10,001 --- $3,980 Tax preparation 200 200 225 Unreimbursed employee expenses 5,700 7,000 4,205 Real estate tax --- --- 2,804 Respondent disallowed the dependency exemption deductions (except for Samuel Douglas in 1994) claimed by petitioners because petitioners did not establish that they provided more than one-half of the support for any of the claimed dependents. Respondent disallowed Mrs. Cotton’s earned income credits, on two theories: First, she did not establish that she had a qualifying child under section 32(a); second, she did not file a joint return with Mr. Cotton. Respondent disallowed the deductions for medical expenses, tax preparation fees, unreimbursed employee expenses, and real property taxes because Mr. Cotton did not establish that he paid these amounts for the reasons claimed. Since the disallowed deductions for 1994 and 1995 reduced Mr. Cotton’s total itemized deductions to amounts less than the standard deduction, respondent disallowed the other itemizedPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011