Paul Edwin Farrow - Page 3

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               Respondent determined a deficiency in petitioner’s Federal             
          income tax of $1,116 for taxable year 2002.  The issues we must             
          decide are whether certain payments petitioner made to his former           
          spouse are deductible alimony payments or nondeductible child               
          support payments and whether petitioner is entitled to the                  
          section 32 earned income credit.                                            
                                     Background                                       
               Some of the facts and certain exhibits have been stipulated.           
          The parties’ stipulations of fact are incorporated in this                  
          opinion by reference and are found as facts in the instant case.            
          At the time of filing the petition in the instant case,                     
          petitioner resided in Ellenwood, Georgia.  During 1997,                     
          petitioner initiated divorce proceedings against his former                 
          spouse in the Superior Court of Solano County, California                   
          (Superior Court).  Petitioner and his former spouse have two                
          children, both of whom lived with petitioner for two and a half             
          months during 2002.1                                                        
               By order dated March 9, 1999 (March 1999 order), the                   
          Superior Court ordered the garnishment of petitioner’s wages in             
          order to pay petitioner’s former spouse $977 per month for child            


               1The younger child was under 18 years of age throughout                
          2002.  The older child turned 19 during September 2002 but did              
          not graduate from high school until 2003.  Petitioner does not              
          dispute his obligation to support his children during 2002 and,             
          as noted below, claimed the sec. 32 earned income credit based on           
          both children.                                                              





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