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$13,000 to $15,000 on expenses incurred by Jagdish for travel and
while in the United States.
Petitioners filed a joint Federal income tax return for each
of the years 1996 and 1997. In each year, petitioners claimed a
child care credit in the amount of $960 for expenses of $4,980
related to care allegedly provided by Caclia G. Bravo.
Respondent disallowed the credit in each year and disallowed a
dependency exemption deduction which petitioners claimed in 1997
for Heche.
The first issue for decision is whether petitioners are
entitled to a section 21 child care credit for each of the years
in issue. Subject to requirements not applicable here, a
taxpayer is entitled to a credit under section 21(a)(1) in an
amount equal to a portion of certain child care and related
expenses paid during the taxable year.
Petitioners argue that the expenses they incurred in
connection with Jagdish are child care expenses which fall under
section 21. Petitioners did not identify Caclia G. Bravo or
otherwise explain why the care provider listed on the return is a
person other than Jagdish, but respondent stated that petitioners
claim to have used this person’s name, address, and Social
Security number because they did not have a Social Security
number for Jagdish.
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Last modified: May 25, 2011