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for 2003. Petitioner, however, failed to provide any documentary
evidence of any of her alleged employment activities and did not
provide a satisfactory explanation for her lack of evidence.
Mr. Marshall, who appeared as a witness, failed to produce any
tax forms, pay stubs, or invoices to document petitioner’s
employment by him in any capacity. Respondent’s determination
that petitioner did not have self-employment income is sustained.
Earned Income Credit
Petitioner claimed the earned income credit for two
“qualifying” children, Destiny and Derrick. Respondent
determined that petitioner is not entitled to the earned income
credit.
Section 32(a)(1) allows an eligible individual an earned
income credit against the individual’s income tax liability. The
credit is a refundable credit that is treated as a payment of
tax. Secs. 6401(b), 32. The credit is based on “earned income”
which includes wages, salaries, tips, and earnings from self-
employment. Sec. 32(a), (c)(2). The amount of the credit is
determined by multiplying an individual’s earned income by a
percentage. Sec. 32(a)(1). Section 32(a)(2) limits the credit
allowed, and section 32(b) prescribes different percentages and
amounts used to calculate the credit based on whether the
eligible individual has no qualifying children, one qualifying
child, or two or more qualifying children.
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Last modified: May 25, 2011