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disallowed the credit for child care expenses; and (3) disallowed
the earned income credit.
Discussion
A. Tax Credits
Section 21(a) allows a credit for child care expenses.
However, section 21(e)(2) provides that if a taxpayer is married
at the close of the taxable year, the credit is allowable only if
the taxpayer files a joint return with his or her spouse. See
sec. 1.44A-3(a), Income Tax Regs.
Section 32(a) allows an earned income credit. However,
section 32(d) provides that in the case of an individual who is
married, an earned income credit is allowable only if a joint
return is filed for the taxable year. See sec. 1.32-2(b)(2),
Income Tax Regs.
A taxpayer’s marital status is determined under section
7703.3 As relevant herein, section 7703(a)(1) provides that the
determination of whether an individual is married shall be made
as of the close of her taxable year. In the present case,
petitioner was, in fact, married as of December 31, 1998. That
3 Formerly, the operative sec. was sec. 143. See sec. 143,
prior to its amendment by sec. 1301(b) of the Tax Reform Act of
1986 (TRA ‘86), Pub. L. 99-514, 100 Stat. 2085, 2603. In 1986,
however, sec. 143 was redesignated as sec. 7703. See TRA ‘86,
sec. 1301(j)(2), 100 Stat. 2657. The redesignation did not
effect any substantive change. We note that the operative
regulations under secs. 21 and 32 still reference sec. 143.
See secs. 1.44A-3(c), 1.32-2(b)(2), Income Tax Regs.
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