- 3 - income in the amount of $2,223.97, consisting of wages in the amount of $2,197.66 and taxable interest income in the amount of $26.31. Although petitioner reported no tax liability (because of the availability of a personal exemption and the standard deduction), petitioner claimed an earned income credit in the amount of $170. After examining petitioner’s return, respondent issued a notice of deficiency. In the notice, respondent determined that petitioner was not entitled to an earned income credit because he received wages while in a penal institution. Thereafter, petitioner invoked the Court's jurisdiction by filing a timely petition for redetermination. Prior to trial, respondent moved for summary judgment. Relying on section 32(c)(2)(B)(iv) and Taylor v. Commissioner, T.C. Memo. 1998-401, respondent contends that petitioner is not entitled to an earned income credit because he was incarcerated throughout the year in issue. Petitioner also moved for summary judgment prior to trial. Petitioner contends that he is entitled to the earned income credit because Pre-Stressed Casting is a private-sector company which paid him wages for work performed outside the Ozark Correctional Center.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011