Jordan v. Comm'r , 2007 Tax Ct. Summary LEXIS 13 ( 2007 )


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  •                   T.C. Summary Opinion 2007-13
    UNITED STATES TAX COURT
    WILLIAM H. JORDAN, Petitioner v.
    COMMISSIONER OF INTERNAL REVENUE, Respondent
    Docket No. 22562-04S.              Filed January 22, 2007.
    William H. Jordan, pro se.
    Robert W. Dillard, for respondent.
    COUVILLION, Special Trial Judge:     This case was heard
    pursuant to section 7463 in effect when the petition was filed.1
    1
    Unless otherwise indicated, section references hereafter
    are to the Internal Revenue Code in effect for the year at issue,
    and all Rule references are to the Tax Court Rules of Practice
    and Procedure. Sec. 7491 in some instances shifts the burden of
    proof to the Commissioner. Petitioner has neither alleged nor
    established that he has satisfied the requirements of that
    section. To the extent that respondent may have had the burden
    of proof in this case, the Court is satisfied that respondent met
    that burden.
    - 2 -
    The decision to be entered is not reviewable by any other Court,
    and this opinion should not be cited as authority.
    Respondent determined a deficiency of $4,359 in petitioner’s
    Federal income tax for the year 2003.
    After a concession by petitioner, noted hereafter, the
    issues for decision are whether, for the year 2003, petitioner is
    entitled to (1) a dependency exemption deduction for his son
    under section 151(c); (2) head-of-household filing status under
    section 2(b)(1); and (3) the earned income credit under section
    32(a).
    Some of the facts were stipulated.    Those facts, with the
    exhibits annexed thereto, are so found and are made part hereof.
    Petitioner’s legal residence at the time the petition was filed
    was Dunedin, Florida.
    On his Federal income tax return for 2003, petitioner
    reported wage income of $16,756.    Petitioner was employed part
    time on the golf course of a country club as an irrigation
    technician.    He had no other employment during 2003 and no other
    income.    Petitioner had a son and a daughter who were 22 years
    old and 19 years old, respectively, in 2003.    The two mothers of
    the children provided no support to them during the year at
    issue.    Petitioner was not married during 2003.
    During the year at issue, the son earned $13,357, and the
    daughter earned $20,096.    Petitioner filed a Federal income tax
    - 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
    2
    Sec. 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...)
    - 4 -
    The second issue is whether petitioner is entitled to head-
    of-household filing status under section 2(b).    Section 2(b)
    defines a head-of-household as an individual taxpayer who (1) is
    not married at the close of his taxable year, and (2) maintains
    as his home a household which constitutes “for more than one-half
    of such taxable year” the principal place of abode of an
    unmarried son or daughter of the taxpayer.    Sec. 2(b)(1)(A)(i).
    An individual maintains a household if he furnishes over half the
    cost of maintaining the household.     Sec. 2(b)(1). Petitioner was
    not married during the year at issue.
    The Court is satisfied from the record that petitioner’s two
    children lived with him at least from May 30 through the end of
    the year 2003.   While the two children may have contributed some
    assistance in the operation of the household, the Court is
    satisfied from the record that petitioner paid the rent,
    utilities, and most of the food and other expenses, and whatever
    the children provided appears to have been incidental.    On this
    record, the Court sustains petitioner on this issue.
    2
    (...continued)
    at issue and had not attained age 24 as of December 31 of the
    year at issue, sec. 151(c)(4) defines “student” as an individual
    who, during each of 5 calendar months during the calendar year is
    a “full-time” student at the institution. Petitioner’s son’s
    transcript issued by the school he attended shows that he was not
    a full-time student during the year at issue.
    - 5 -
    The third issue is petitioner’s claim to the earned income
    credit under section 32(a).
    Section 32(a) provides for an earned income credit in the
    case of an eligible individual.   Section 32(c)(1)(A), in
    pertinent part, defines an “eligible individual” as an individual
    who has a qualifying child for the taxable year.   Sec.
    32(c)(1)(A)(i).   A qualifying child is one who satisfies a
    relationship test, a residency test, an age test, and an
    identification requirement.   See sec. 32(c)(3).   To satisfy the
    age test, the qualifying child must be an individual who has not
    attained the age of 19 as of the close of the calendar year in
    which the taxable year of the taxpayer begins or must be a
    student (as defined in section 151(c)(4)) who has not attained
    the age of 24 as of the close of the year.   Sec. 32(c)(3)(C).
    Petitioner’s daughter attained age 19 in April 2003.   Because the
    daughter does not satisfy the age test, she was not a qualifying
    child for purposes of the earned income credit.    The son attained
    the age of 22 during the 2003 tax year and was not a full-time
    student.   Therefore, he likewise is not a qualifying child for
    purposes of the earned income credit.   However, section
    32(c)(1)(A)(ii) allows an earned income credit to an “eligible
    individual” if such individual does not have a qualifying child
    but satisfies the following conditions:
    - 6 -
    (1) The individual’s principal place of abode was in the
    United States for more than one-half of the taxable year;
    (2) the individual had attained age 25 and not attained age
    65 on or before the close of the taxable year; and
    (3) the individual was not a dependent for whom a deduction
    is allowable under section 151 to another taxpayer for the
    taxable year at issue.
    Petitioner is not an eligible individual because his income
    exceeded the completed phaseout amount prescribed by section
    32(b) of $11,230 (with no qualifying children).    See Rev. Proc.
    2002-70, sec. 3.06, 2002-2 C.B. 845, 847-848.    Respondent
    therefore is sustained on this issue.
    Reviewed and adopted as the report of the Small Tax Case
    Division.
    Decision will be entered
    under Rule 155.
    

Document Info

Docket Number: No. 22562-04S

Citation Numbers: 2007 T.C. Summary Opinion 13, 2007 Tax Ct. Summary LEXIS 13

Judges: \"Couvillion, D. Irvin\"

Filed Date: 1/22/2007

Precedential Status: Non-Precedential

Modified Date: 11/21/2020