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the first prong of the test of section 24. The Court sustains
respondent’s determination regarding the section 24 child tax
credits.
5. Child Care Credit
Section 21(a) generally provides for what is sometimes
referred to as the child care credit. The allowable credit
generally is based upon employment-related expenses that are
incurred to enable the taxpayer to be gainfully employed,
including expenses incurred for the care of a qualifying
individual. Sec. 21(b)(2). A “qualifying individual” must be
someone for whom the taxpayer is entitled to a dependency
deduction under section 151(c). Sec. 21(b)(1). Petitioner is
not entitled to dependency exemptions for Eric and Cassandra,
and, thus, she is not entitled to the child care credit.
Respondent’s determination on this issue is sustained.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
for respondent.
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Last modified: May 25, 2011