T.C. Memo. 2003-160
UNITED STATES TAX COURT
ETTA JANE LINTON, a.k.a. ELLA JANE LINTON, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 7147-02. Filed June 2, 2003.
Etta Jane Linton, pro se.
Dennis R. Onnen and James E. Cannon, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
MARVEL, Judge: Respondent determined a deficiency in
petitioner’s 2000 Federal income tax of $4,037.1 The issues for
decision are: (1) Whether petitioner is entitled to head of
1
This deficiency is subject to a prepayment credit
adjustment of $3,210.96.
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household filing status under section 2(b);2 (2) whether
petitioner is entitled to claim dependency exemptions under
section 151(c) for her two sons; and (3) whether petitioner is
entitled to an earned income credit under section 32(a).
FINDINGS OF FACT
Some of the facts have been stipulated. We incorporate the
stipulated facts and accompanying exhibits into our findings by
this reference. Petitioner resided in Albuquerque, New Mexico,
at the time of filing the petition.
Petitioner has two sons, Frankie L. Linton (Frankie) and
Avery L. Linton (Avery). During the taxable year at issue,
Frankie and Avery resided with foster parents.3 Frankie and
Avery visited with petitioner approximately two times a week but
did not stay overnight at petitioner’s home. Petitioner paid for
meals during Frankie and Avery’s visits but did not routinely pay
for their groceries.
On her Form 1040A, U.S. Individual Income Tax Return,
petitioner claimed head of household filing status and claimed
dependency exemptions for Frankie and Avery. Petitioner also
claimed an earned income credit and attached Schedule EIC, Earned
2
All section references are to the Internal Revenue Code in
effect for the year in issue, and all Rule references are to the
Tax Court Rules of Practice and Procedure.
3
The State of New Mexico Children, Youth and Families
Department had legal custody of Frankie and Avery at this time.
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Income Credit (Qualifying Child Information), listing Frankie and
Avery as qualifying children.
On January 25, 2002, respondent mailed to petitioner a
notice of deficiency. In the notice of deficiency, respondent
disallowed the claimed dependency exemptions for Frankie and
Avery and the claimed earned income tax credit. Additionally,
respondent determined that petitioner’s filing status was single.
On April 10, 2002, petitioner filed a timely petition
contesting respondent’s determinations.4 This proceeding
followed.
OPINION
Respondent contends that petitioner is not entitled to claim
head of household filing status or the earned income credit
because Frankie and Avery resided in a foster home throughout the
year at issue. Respondent also contends that petitioner did not
provide more than one-half of Frankie and Avery’s support and,
therefore, is not entitled to claim dependency exemptions for
Frankie and Avery.
Respondent’s determinations are presumed correct, and
4
Although respondent’s notice of deficiency dealt solely
with petitioner’s income tax liabilities for the taxable year
2000, petitioner disputed her income tax liabilities for 1998,
1999, and 2000. On June 14, 2002, respondent filed a Motion to
Dismiss for Lack of Jurisdiction and To Strike as to Taxable
Years 1998 and 1999. This Court granted respondent’s motion by
order dated Sept. 5, 2002, dismissing the case as to the taxable
years 1998 and 1999 and striking references to those years from
the petition.
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petitioner bears the burden of proof.5 Rule 142(a)(1); Welch v.
Helvering, 290 U.S. 111, 115 (1933). Moreover, deductions and
tax credits are a matter of legislative grace, and petitioner
must clearly demonstrate her entitlement to the claimed
deductions and tax credit. INDOPCO, Inc. v. Commissioner, 503
U.S. 79, 84 (1992); Segel v. Commissioner, 89 T.C. 816, 842
(1987).
I. Head of Household Filing Status
Section 2(b) contains the requirements for head of household
filing status. Section 2(b)(1)(A)(i) provides that if a taxpayer
is unmarried at the end of the taxable year, is not a surviving
spouse, and maintains6 as the taxpayer’s home a household that
constitutes for more than one-half of the taxable year the
principal place of abode of the taxpayer’s child, the taxpayer
may then claim head of household filing status.
Although petitioner was not married and was not a surviving
spouse at the end of the taxable year at issue, petitioner did
not maintain a household that constituted Frankie’s or Avery’s
principal place of abode for more than one-half of the taxable
year. In fact, during the entire year, Frankie and Avery resided
5
Petitioner has not satisfied the requirements of sec.
7491(a), and, consequently, sec. 7491(a) does not shift the
burden of proof to respondent.
6
According to sec. 2(b)(1), a taxpayer “maintains” the
household if the taxpayer contributes over half of the household
maintenance costs.
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in the home of their foster parents. Accordingly, we conclude
that petitioner is not entitled to head of household filing
status.
II. Dependency Exemptions
A taxpayer may claim exemptions for individuals who qualify
as the taxpayer’s dependents. Sec. 151(a), (c)(1). Section
152(a)(1) includes a taxpayer’s children as dependents if the
taxpayer provided over half of their support during the calender
year.
Petitioner testified at trial that she occasionally bought
food, clothes, school supplies, and toys for Frankie and Avery.
Petitioner did not introduce any documentary evidence in support
of her testimony. Even assuming that petitioner’s
unsubstantiated testimony correctly accounts for her
contributions toward Frankie and Avery’s support, petitioner
clearly did not provide over half of their support as required by
section 152(a). We therefore sustain respondent’s determination
that petitioner is not entitled to claim dependency exemptions
for her two sons.
III. Earned Income Credit
Section 32(a)(1) provides an income tax credit, subject to
limitation by section 32(a)(2), for taxpayers who satisfy certain
eligibility requirements. Pursuant to section 32(c)(1)(A)(i), a
taxpayer is eligible for the earned income credit if the taxpayer
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has a “qualifying child”. A “qualifying child” includes a
taxpayer’s son or daughter who shares the taxpayer’s principal
place of abode for more than one-half of the taxable year and who
meets certain age requirements. Sec. 32(c)(3)(A) and (B)(i)(I).
Frankie and Avery did not share petitioner’s principal place
of abode at any time during the taxable year and, as a result,
are not qualifying children for purposes of section
32(c)(1)(A)(i). Accordingly, we conclude that because petitioner
has no qualifying children and is not otherwise eligible for the
earned income credit,7 petitioner is not entitled to claim an
earned income credit.
We have considered the remaining arguments of both parties
for results contrary to those expressed herein and, to the extent
not discussed above, find those arguments to be irrelevant, moot,
or without merit.
To reflect the foregoing,
Decision will be entered
for respondent.
7
A taxpayer without a qualifying child may be eligible for
the earned income credit pursuant to sec. 32(c)(1)(A)(ii).
Though petitioner satisfies the three requirements of sec.
32(c)(1)(A)(ii), petitioner’s adjusted gross income is too high
for purposes of claiming an earned income credit in the absence
of two or more qualifying children. See sec. 32(a)(2) and (b).