- 15 -
fact, find to be credible. See Niedringhaus v. Commissioner, 99
T.C. 202, 219 (1992).
In view of their failure to substantiate, the Court holds
that petitioners are not entitled to deductions in excess of the
amounts allowed by respondent in the notice of deficiency.
Respondent's determinations are sustained.
Since the remaining itemized deductions respondent allowed
for tax year 1995 were less than the standard deduction for that
year, respondent allowed petitioners the higher amount of the
standard deduction. See Wilkinson v. Commissioner, 71 T.C. 633,
635 (1979). Respondent's determination is sustained.
2. Earned Income Credit
Section 32(a)(1) allows an eligible individual an earned
income credit against the individual’s income tax liability.
However, section 32(a)(2) limits the amount of credit allowable.
Section 32(a)(2) specifies the amounts of adjusted gross
income at which the earned income credit is phased out and the
taxpayer is no longer eligible for the credit. In the case of an
eligible individual with two qualifying children, the phaseout
amounts are: $12,200 for 1993, Rev. Proc. 92-102, 1992-2 C.B.
579; $11,000 for 1994, sec. 32(b)(2)(B); and $11,290 for 1995,
Rev. Proc. 94-72, 1994-2 C.B. 811.
The Court has sustained respondent's determinations that
petitioners had additional income in the amounts set forth in the
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011