- 3 - $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.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011