Manuella Cantrell - Page 6

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          that petitioner is entitled to dependency exemption deductions              
          for Brandon and James for 2001.  We sustain respondent on this              
          issue.                                                                      
          2.  Child Tax Credits                                                       
               Section 24(a)(1) provides for a “credit against the tax * *            
          * for the taxable year with respect to each qualifying child of             
          the taxpayer”.  The term “qualifying child” means any individual            
          if three tests are satisfied.  Sec. 24(c)(1).                               
               In the present case, the only relevant test is whether the             
          taxpayer is allowed a deduction under section 151 with respect to           
          such individual for the taxable year.  Sec. 24(c)(1)(A).  We have           
          concluded, however, that petitioner is not entitled to dependency           
          exemption deductions for Brandon and James for 2001.                        
          Accordingly, they are not qualifying children, and petitioner is            
          not entitled to the child tax credits for 2001.  We sustain                 
          respondent’s determination on this issue.                                   
          3.  Credit for Child and Dependent Care Expenses                            
               Section 21(a)(1) provides for a credit against tax in the              
          case of “an individual who maintains a household which includes             
          as a member one or more qualifying individuals”.  The term                  
          “qualifying individual” means, among other things, a dependent of           
          the taxpayer who is under the age of 13 and with respect to whom            
          the taxpayer is entitled to a deduction under section 151(c).               
          Sec. 21(b)(1)(A).                                                           






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