- 8 - Section 1(b) imposes a special income tax rate on an individual filing as head of household. As relevant herein, section 2(b) defines “head of household” as an unmarried individual who maintains as his or her home a household which constitutes for more than one-half of the taxable year the principal place of abode of “any other person who is a dependent of the taxpayer, if the taxpayer is entitled to a deduction for the taxable year for such person under section 151”. Sec. 2(b)(1)(A)(ii). We have already held that petitioner is not entitled to the dependency exemption deduction pursuant to section 151 with respect to SAB. It follows, accordingly, that petitioner is not entitled to head of household filing status. Therefore, we sustain respondent’s determination with respect to this issue. C. Earned Income Credit Petitioner claimed an earned income credit for taxable year 2003 with SAB as the qualifying child. In the notice of deficiency, respondent disallowed the earned income credit. Subject to certain limitations, an eligible individual is allowed a credit which is calculated as a percentage of the individual’s earned income. Sec. 32(a)(1). Earned income includes wages. Sec. 32(c)(2)(A). Section 32(c)(1)(A)(I), in pertinent part, defines an “eligible individual” as “any individual who has a qualifying child for the taxable year”. APage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011