- 4 - determined that petitioner’s filing status should be single, asserting that petitioner did not furnish more than one-half of the cost of maintaining the household. Further, respondent disallowed the earned income credit, determining that petitioner’s sons were qualifying children for Mr. Allen, and, since Mr. Allen had a higher adjusted gross income, petitioner is not entitled to the credit. Discussion 1. Filing Status In order to qualify for head-of-household filing status, a taxpayer must satisfy the requirements of section 2(b). Pursuant to that section, and as relevant herein, an individual qualifies as a head of household if the individual is not married at the close of the taxable year and maintains as her home a household that constitutes for more than one-half of the taxable year the principal place of abode of a son or daughter of the taxpayer. Sec. 2(b)(1)(A)(i). A taxpayer is considered as maintaining a household only if over half of the cost of maintaining the household during the taxable year is furnished by the taxpayer. Sec. 2(b)(1) (flush language). The cost of maintaining a household includes property taxes, mortgage interest, rent, utility charges, upkeep and repairs, property insurance, and food consumed on the premises. Sec. 1.2-2(d), Income Tax Regs. The cost of maintaining a household does not include the cost ofPage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011