T.C. Memo. 1999-297
UNITED STATES TAX COURT
CHARLES W. NEWSOM, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 18459-98. Filed September 3, 1999.
Charles W. Newsom, pro se.
Gary L. Bloom, for respondent.
MEMORANDUM OPINION
DEAN, Special Trial Judge: Respondent determined a
deficiency in petitioner's Federal income tax of $1,709 for the
taxable year 1997. Unless otherwise indicated, section
references are to the Internal Revenue Code in effect for the
year in issue.
The issues for decision are: (1) Whether petitioner is
entitled to head of household filing status; and (2) whether
petitioner is entitled to an earned income credit.
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Some of the facts have been stipulated and are so found.
The stipulation of facts and the exhibits received into evidence
are incorporated herein by reference. Petitioner resided in
Little Rock, Arkansas, at the time he filed his petition.
Background
Petitioner and his wife, Longina Newsom, were legally
married throughout taxable year 1997 and remained married at the
time of trial. Longina Newsom is the mother of three daughters,
Garanece Shaw, Krissa Williams, and Shanika West. Petitioner is
not the biological father of any of Longina Newsom's children,
all of whom were born before her marriage to petitioner.
Petitioner and Longina Newsom filed separate returns for taxable
year 1997 and each claimed single filing status with one
exemption for himself or herself and one dependency exemption.
Petitioner claimed Krissa Williams as his dependent, and Longina
Newsom claimed Garanece Shaw as her dependant.
In the notice of deficiency respondent determined that
petitioner's proper filing status was married filing separately
and did not make an adjustment with respect to petitioner's
dependency exemption for Krissa Williams. Respondent disallowed
petitioner's claims for head of household filing status and
earned income credit.
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Discussion
Head of Household Filing Status
The first issue on which we focus is whether petitioner
qualifies as a head of household. An individual who qualifies as
a head of household has special tax rates applied to his taxable
income. See sec. 1(b). Section 2(b)(1) provides that "an
individual shall be considered a head of a household if, and only
if, such individual is not married at the close of his taxable
year". Petitioner concedes that he was legally married
throughout the 1997 taxable year. Therefore, petitioner does not
meet the requirements to file as a head of household under
section 2(b).
Petitioner also is not entitled to file as a head of
household under section 2(c). Section 2(c) provides that if a
taxpayer is a married individual living apart from his spouse, he
may be treated as an unmarried taxpayer for head of household
filing purposes if the taxpayer meets the requirements of section
7703(b). Section 7703(b) treats an individual as not married if:
(1) The taxpayer files a separate tax return; (2) the taxpayer
maintains a household that is for more than one-half of the
taxable year the principal place of abode of the taxpayer's child
for whom the taxpayer would be entitled to claim a dependency
exemption; (3) the taxpayer pays more than half the cost of
maintaining the household for the tax year; and (4) the
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taxpayer's spouse is not a member of the household during the
last 6 months of the tax year.
Petitioner contends that he is entitled to head of household
filing status because he and Longina Newsom lived apart during
the 1997 tax year and because petitioner provided a household
which was the primary residence for Krissa Williams for more than
half of the 1997 tax year. Petitioner, however, has failed to
establish these facts.
The requirement of section 7703(b)(3) that a taxpayer's
spouse not be a member of his household during the last 6 months
of the taxable year is met "if such household does not constitute
such spouse's place of abode at any time during such year." Sec.
1.7703-1(b)(5), Income Tax Regs. There was conflicting testimony
regarding petitioner and Longina Newsom's living arrangements
during the year at issue. Petitioner testified that he and
Longina Newsom separated sometime in 1996 and, with the exception
of a 1-month reconciliation in November of 1997, remained
separated until January 1999. Although petitioner testified that
at no time during 1997 did he and Longina Newsom live together,
Longina Newsom testified that she and petitioner lived together
for "about one month" in 1997.
In further conflict with petitioner's assertion that he and
Mrs. Newsom did not live together during the year at issue,
petitioner filed a complaint on March 20, 1998, instituting a
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divorce proceeding against Longina Newsom indicating that he and
Longina Newsom did not separate until approximately March 14,
1998. On the basis of the foregoing evidence, we conclude that
petitioner has not established that he and Longina Newsom
maintained separate households throughout the last 6 months of
1997.
While such a finding is sufficient to determine that
petitioner does not qualify as a head of household, see sec.
7703(b)(3), petitioner does not qualify on additional grounds.
Even if we were to find, on the basis of petitioner and Longina
Newsom's testimony, that Krissa Williams resided with petitioner
for more than one-half of the year at issue, petitioner failed to
establish that he provided more than one-half the cost of
maintaining his household as the principal residence of Krissa
Williams during 1997.
The regulations provide guidance concerning the types of
expenses which constitute the cost of maintaining a household.
These expenses include "property taxes, mortgage interest, rent,
utility charges, upkeep and repairs, property insurance, and food
consumed on the premises." Sec. 1.7703-1(b)(4), Income Tax Regs.
Petitioner offered no evidence that he incurred these types of
expenses in maintaining the households in which he alleges he and
Krissa Williams lived.
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Petitioner testified that he and Krissa Williams lived at
9908 Independence from January until May 1997. Petitioner
provided no evidence of his contributions toward maintaining this
household. According to petitioner, Krissa Williams did not live
with him during the summer months, and it was not until October
1997 that Krissa Williams resumed her residence with petitioner.
Petitioner testified that in October 1997 he and Krissa Williams
moved into a home at 27 Windsor Drive, which petitioner testified
he eventually purchased under a rent-to-buy agreement. Even if
petitioner incurred the entire cost of maintaining his household
at 27 Windsor Drive, he maintained this household for only the
last 3 months of the year. We cannot presume that these expenses
exceeded one-half of the cost of maintaining Krissa Williams'
principal abode for the year.
We have no doubt that petitioner contributed to the care of
Krissa Williams. In fact respondent did not make an adjustment
with respect to petitioner's dependency exemption for Krissa
Williams. The regulations, however, specifically provide that
the costs of maintaining a household "do not include the cost of
clothing, education, medical treatment, vacations, life
insurance, and transportation." Sec. 1.7703-1(b)(4), Income Tax
Regs. Without evidence of the cost of maintaining a household or
of petitioner's contributions, it is impossible to conclude that
petitioner provided more than one-half of the cost of maintaining
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his household. Hence, for the purposes of section 7703(b) and
section 2, we will treat petitioner as married during the tax
year of 1997.
Accordingly, we hold that petitioner is not entitled to
claim head of household filing status for taxable year 1997.
Earned Income Credit
The remaining issue for decision is whether petitioner is
entitled to an earned income credit for the taxable year in
issue. Section 32(d) provides that an individual who is married,
within the meaning of section 7703, must file a joint return with
his spouse for the taxable year in order for section 32 to apply.
Petitioner has conceded that he and Longina Newsom were
legally married during the year at issue. Petitioner also does
not meet the requirements of section 7703(b), which treats
certain individuals living apart as not married. Thus, we hold
that petitioner is not entitled to an earned income credit for
the 1997 tax year because he did not file a joint return with
Longina Newsom.
To reflect the foregoing,
Decision will be entered
for respondent.