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credit because the two children upon whom petitioner claims the
earned income credit are not qualifying children. Respondent,
therefore, is sustained on this issue.
Child Care Credit
The fourth issue is whether petitioner is entitled to claim
the child care credit under section 21(a).
Section 21(a) generally allows a credit against the tax to
any individual who maintains a household that includes as a
member one or more qualifying individuals. The term “qualifying
individual”, under section 21(b), includes a dependent of the
taxpayer (as defined in section 152(a)(1)) under age 13. The
allowable credit, under section 21(b)(2), 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. Petitioner is not
entitled to the child care credit for the same reason he is not
entitled to the dependency exemption deductions for the two
children. Further, petitioner failed to establish that he
incurred employment-related expenses for the care of the children
that enabled him to be employed. Respondent is sustained on this
issue.
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Last modified: March 27, 2008