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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”. A
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