- 8 -
sources of funds used for expenses incurred for the mutual
benefit of TeraLynn, Brandon, James, and herself during that
taxable year. Accordingly, we conclude that petitioner is
entitled to head-of-household filing status, and we hold for
petitioner on this issue.
5. Rate Reduction Credit
The Economic Growth and Tax Relief Reconciliation Act of
2001, Pub. L. 107-16, 115 Stat. 38, created a new regular income
tax bracket of 10 percent for taxable years beginning after
December 31, 2000. See sec. 1(i). Congress decided to implement
the 10-percent rate bracket for 2001 via a rate reduction credit
for that taxable year. See secs. 1(i)(1)(D), 6428; H. Conf.
Rept. 107-84, at 5-6 (2001). The maximum amount of the rate
reduction credit depends upon a taxpayer’s filing status for
2001. See sec. 1(i)(1)(B). Petitioner claimed a rate reduction
credit of $500 for 2001 based upon her having claimed head-of-
household filing status. Respondent disallowed the credit to the
extent that respondent determined her filing status to be single.
Having concluded that petitioner is entitled to the head-of-
household filing status, we further conclude that petitioner is
entitled to the rate reduction credit of $500 for 2001.
Accordingly, we do not sustain respondent’s determination on this
issue.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011