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etc., for 2001. On the Schedule K-1, the institutional trustee
identified petitioner as the beneficiary and accurately listed
the following items of income allocable to him:
Allocable share item Amount
Interest $3,579
Ordinary dividends 6
Annuity income 10,827
The total of these three amounts, $14,412, was then correctly
identified as petitioner’s income for regular tax purposes.
Petitioner filed a Federal income tax return for 2001. On
his return, petitioner listed his filing status as single.
Petitioner reported adjusted gross income in the amount of
$7,554, consisting almost exclusively of wages. Petitioner did
not report any allocable share item in respect of his late
mother’s trust as disclosed by the institutional trustee on the
Schedule K-1.
Also on his 2001 return, petitioner claimed an earned income
credit. Petitioner claimed the credit in his own right without
regard to a qualifying child.
In the notice of deficiency, respondent determined that
petitioner failed to report income from his late mother’s trust
in the amount of $14,412 as disclosed by the institutional
trustee on the Schedule K-1. Respondent also determined that
petitioner was not entitled to an earned income credit based on
(1) the amount of his adjusted gross income, see sec. 32(a), and
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