- 4 - increased to $32,000 per year, and Mendy has stopped receiving welfare benefits. Petitioner timely filed a Federal income tax return as a head of household in each of the years in issue. In 1995, he reported income of $8,590, claimed exemption deductions for himself, Dustin, and Kristion, and claimed the earned income credit with Dustin and Kristion as qualifying children. In 1996, he reported income of $8,761, claimed exemption deductions for himself, Kristion, and Brittany, and claimed the earned income credit with Kristion and Brittany as qualifying children. In the statutory notices of deficiency, respondent for each year changed petitioner’s filing status to single and disallowed the dependency exemption deductions and earned income credit. Subject to limitations not applicable here, a deduction is allowed under section 151(a) for each dependent of a taxpayer. Sec. 151(a), (c)(1). A child of the taxpayer, or an individual whose principal place of abode is the taxpayer’s home and who is a member of the taxpayer’s household, is a dependent of that taxpayer if the taxpayer provides over half of his support for the taxable year. Sec. 152(a)(1), (9). Respondent makes several arguments supporting his disallowance of the claimed dependency exemption deductions. First, as to Dustin and Kristion, respondent argues that petitioner is not their father. However, a taxpayer need not bePage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011