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shall be allowed a credit based on the expenses for household
services and dependent care services incurred to enable the
taxpayer to be gainfully employed. Sec. 21(a) and (b). Section
21(b)(1) defines, in pertinent part, a qualifying individual as a
dependent of the taxpayer who is under the age of 13 and with
respect to whom the taxpayer is entitled to a dependency
exemption deduction.
We have held that petitioner is not entitled to dependency
exemption deductions for his niece and nephew. Moreover,
petitioner did not "maintain a household" because he did not show
that he furnished over half the cost of maintaining the home.
Sec. 21(e)(1). We sustain respondent's determination with
respect to this credit.
Petitioner claimed a child tax credit of $473 for 1998,
which respondent disallowed. Section 24(a) allows a credit for
each qualifying child of the taxpayer. A "qualifying child"
means any individual if the taxpayer is allowed a deduction under
section 151 with respect to the individual for the taxable year,
the individual has not attained the age of 17 by the close of the
year, and the individual bears a relationship to the taxpayer
described in section 32(c)(3)(B). Sec. 24(c). In this case,
because petitioner is not allowed dependency exemptions under
section 151 for his niece and nephew, they are not qualifying
children. Petitioner does not qualify for the child tax credit
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Last modified: May 25, 2011