- 3 - Petitioner worked for the Department of Defense and received wages totaling $14,010 in 2003. On his 2003 Form 1040A, U.S. Individual Income Tax Return, which was prepared by H&R Block, petitioner listed RJM and CGM, his nieces, as dependents. Petitioner filed his Federal tax return as head of household and claimed a standard deduction in the amount of $7,000.3 Petitioner claimed three exemptions, one for himself and dependency exemptions for RJM and CGM, totaling $9,150. Petitioner also claimed an earned income credit in the amount of $4,142, and a child tax credit in the amount of $351. According to petitioner and H&R Block’s calculations, petitioner was entitled to a $4,790 refund. The notice of deficiency was sent to petitioner on August 30, 2004. In the notice of deficiency, respondent: (1) Disallowed the dependency exemptions for petitioner’s nieces; (2) changed petitioner’s filing status from head of household to single and adjusted the standard deduction accordingly; (3) disallowed the child tax credit; and (4) disallowed the earned income credit. As a result, respondent determined a deficiency of $5,116. Petitioner timely petitioned this Court, and a trial was held on February 6, 2006, in El Paso, Texas. 3The standard deduction for single or married filing separately for the taxable year 2003 was $4,750.Page: Previous 1 2 3 4 5 6 7 8 9 10 NextLast modified: November 10, 2007