- 11 - 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 individual. Other provisions and conditions of the credit are not pertinent here. We have concluded that petitioner is not entitled to a dependency exemption deduction pursuant to section 151(c) for Bradley; therefore, Bradley is not a qualifying individual. Respondent has conceded that Michelle is a qualifying individual; however, respondent has determined that petitioner is not entitled to the credit because he has not substantiated that he paid the amounts claimed for child care. On his return, petitioner reported that he paid child care to one child care facility, Crib to Crayon, and to two individuals who occasionally babysat his child. Petitioner produced no canceled checks, receipts, or other records to substantiate his claimed expense. At trial, petitioner estimated that during the year at issue he paid $375 per month for child care for Michelle. We think it unlikely that petitioner could have held a job from January until some time in May without incurring some expense for the care of his daughter. Petitioner, however, was not employed after May 1995; the Court cannot conclude that childPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011