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dependency exemption deductions for Reginald Givens, Jamal
Pruitt, Johnnie Payton, and Preather Pruitt. Petitioner also
filed as head of household on her 1995, 1996, and 1997 Federal
income tax returns and claimed an earned income credit on her
1996 Federal income tax return.
Respondent disallowed the dependency exemption deductions
because petitioner failed to establish that she was entitled to
the exemption for each individual claimed. As a result of the
disallowance, respondent further determined that petitioner’s
filing status was single, not head of household, disallowed the
earned income credit, and imposed accuracy-related penalties.
Dependency Exemption
Section 151(c) allows a taxpayer to deduct an annual
exemption amount for each dependent of the taxpayer. A
“dependent” is defined in section 152(a) as an individual “over
half of whose support, for the calendar year in which the taxable
year of the taxpayer begins, was received from the taxpayer (or
is treated under subsection (c) or (e) as received from the
taxpayer)”.
In order to prevail, petitioner must show by competent
evidence that the following requirements are satisfied: (1) The
dependent’s gross income must be less than the amount of the
exemption amount for the taxable year in which the deduction is
claimed (the gross income requirement); (2) the dependent must
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Last modified: May 25, 2011