Anthony L. Poole - Page 9




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          1997 and $414 in 1998.  Respondent disallowed the credit for each           
          year.                                                                       
               Section 21 provides, in part, that an individual who                   
          maintains a household which includes as a member one or more                
          qualifying individuals 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) 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 under section 151.                      
               We have held that petitioner is not entitled to dependency             
          exemption deductions for his son and daughter in 1997 and for his           
          son in 1998.  We sustain respondent’s determination and hold that           
          petitioner cannot claim a credit for child and dependent care               
          expenses for either of the years in issue.                                  
               Finally, we must consider whether petitioner may claim                 
          earned income credits under section 32(a)(1) in the amounts of              
          $2,667 and $1,925 for 1997 and 1998, respectively.  Respondent              
          disallowed the earned income credit for each year.                          
               Section 32(a) provides for an earned income credit in the              
          case of an eligible individual.  Section 32(c)(1)(A), in relevant           
          part, defines an eligible individual as either (1) an individual            
          who has a qualifying child for the taxable year, or (2) an                  






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