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return for the year 2003 as a head-of-household and claimed the
son and daughter as dependents. Petitioner also claimed an
earned income credit of $3,563.
In the notice of deficiency, respondent disallowed the
dependency exemption deductions for the son and daughter, changed
petitioner’s filing status to single, and disallowed the earned
income credit. At trial, petitioner conceded he was not entitled
to the dependency exemption deduction for his daughter because
her income exceeded his income.
With respect to the claimed dependency exemption deduction
for the son, section 151(c) allows taxpayers to deduct an annual
exemption amount for each dependent, as defined in section 152,
whose gross income for the year is less than the exemption
amount. Sec. 151(c)(1)(A). Under section 151(d), the exemption
amount is $2,000. Petitioner’s son, during the year at issue,
earned income of $13,357. Therefore, since petitioner’s son
earned gross income in excess of the exemption amount under
section 151(c)(1)(A), it follows that petitioner is not entitled
to a dependency exemption deduction for his son for the year at
issue. Respondent, therefore is sustained on this issue.2
2Sec. 151(c)(1)(B) provides generally that a dependency
exemption deduction is allowed for a claimed dependent if the
claimed dependent has not attained age 24 at the close of the
taxable year and is a student. Even though petitioner’s son was
enrolled as a student at St. Petersburg College during the year
(continued...)
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Last modified: May 25, 2011