Emmanuel I. Nwachukwu - Page 11




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          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 child           






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