- 6 - "Head of household", as relevant here, is defined as an unmarried taxpayer who maintains as his home a household which constitutes for more than one half of the taxable year the principal place of abode of an individual for whom the taxpayer is entitled to a dependency exemption deduction under section 151. See sec. 2(b)(1)(A)(ii). A taxpayer is considered as maintaining a household only if he furnishes over half of the cost of maintaining the household during the taxable year. See sec. 2(b)(1). Based on the record, we find that petitioner furnished over half of the cost of maintaining his apartment during 1995. We further find that he meets the other requirements of section 2(b) and hold that he is entitled to head of household filing status for 1995. The third issue for decision is whether petitioner is entitled to an earned income credit. Petitioner claimed an earned income credit for 1995 in the amount of $2,426 with Joshua and Amber listed as his qualifying children. In the statutory notice of deficiency, respondent disallowed the claimed credit.3 3 Respondent stated in his trial memorandum that his adjustment for "recapture of the earned income credit [is] computational" based on the Court's holdings on the other issues in this case. Respondent misstates the law applicable to this case. Petitioner's entitlement to the sec. 32 earned income credit for 1995 is not conditioned on petitioner's entitlement to dependency exemption deductions under sec. 151 or head of household filing status under sec. 2(b). The statutory language which previously linked those issues was removed by the Omnibus (continued...)Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011