- 3 - 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...)Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011