Leona Payton - Page 6

                                        - 5 -                                         

          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                 
               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              

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011