Huon Pen - Page 3

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               Respondent determined a deficiency in petitioner’s Federal             
          income tax in the amount of $3,308 for 2001.                                
               The issues for decision are whether, for the year 2001,                
          petitioner is entitled to (1) a dependency exemption deduction              
          for one child under section 151(c); (2) head-of-household filing            
          status under section 2(b)(1); and (3) the earned income credit              
          under section 32(a).2                                                       
               Some of the facts were stipulated.  Those facts, with the              
          exhibits annexed thereto, are so found and are made part hereof.            
          Petitioner’s legal residence at the time the petition was filed             
          was Vancouver, Washington.                                                  
               On her Federal income tax return for 2001, petitioner                  
          reported total income of $13,285, consisting of $10,363 in salary           
          and wages, $17 in taxable interest income, and $2,905 in                    
          unemployment compensation.  Petitioner deducted two exemptions,             
          one for herself and the other for her granddaughter, L.H.  As               
          noted supra note 2, petitioner claimed the child care credit, the           
          child tax credit, the earned income credit, and head-of-household           
          filing status.                                                              

               2Petitioner claimed a child care credit under sec. 21 and              
          the child tax credit under sec. 24.  Both credits are allowable             
          if the taxpayer is entitled to a dependency exemption deduction             
          for a child.  Accordingly, petitioner’s entitlement to these                
          credits depends on the Court’s holding on the dependency                    
          exemption deduction issue.                                                  

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