- 5 - filing status to be single. Section 1(b) imposes a special tax rate on individuals filing as “heads of households”. “Head of household” is defined in section 2(b) as an unmarried individual who maintained as his home a household which constitutes for more than one-half of the taxable year the principal place of abode for specific family members. See sec. 2(b)(1)(A). A taxpayer is considered to be maintaining a household only if over half the cost of maintaining the household during the taxable year is furnished by the taxpayer. Sec. 2(b). Petitioner produced no evidence to show that she provided over half the cost of maintaining the household during 2003. Therefore, respondent’s determination on this issue is sustained. Earned Income Credit Petitioner claimed the earned income credit for taxable year 2003 for two “qualifying children”. Respondent determined that petitioner is not entitled to the earned income credit for 2003. Section 32(a)(1) allows an eligible individual an earned income credit against the individual’s income tax liability. Section 32(a)(2) limits the credit allowed, and section 32(b) prescribes different percentages and amounts used to calculate the credit based on whether the eligible individual has no qualifying children, one qualifying child, or two or more qualifying children. To be eligible to claim an earned income credit with respectPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011