2001 Tax Ct. Summary LEXIS 193">*193 PURSUANT TO INTERNAL REVENUE CODE SECTION 7463(b), THIS OPINION MAY NOT BE TREATED AS PRECEDENT FOR ANY OTHER CASE.
GOLDBERG, SPECIAL TRIAL JUDGE: This case was heard pursuant to the provisions of
Respondent determined deficiencies in petitioner's Federal income taxes for 1995 and 1996 in the amounts of $ 2,433 and $ 2,963, respectively. The issues for decision are: (1) Whether petitioner is entitled to dependency exemption deductions; (2) whether petitioner is entitled to head of household status; and (3) whether petitioner is entitled to earned income credits. Adjustments to the standard deduction are computational and will be resolved by the Court's holding on the issues in this case.
Some of the facts in this case have2001 Tax Ct. Summary LEXIS 193">*194 been stipulated and are so found. The stipulation of facts and the attached exhibits are incorporated herein by this reference. At the time the petition was filed, petitioner lived in Detroit, Michigan.
Petitioner lived in a 3-bedroom apartment during 1995 and 1996. During these years, petitioner assisted, as needed, a number of individuals with food, clothing, and shelter. Petitioner was employed as a computer operator by First Independence National Bank of Detroit during the years at issue.
During 1995 and 1996, petitioner was in a relationship with Thomasina Hunter (Ms. Hunter). Ms. Hunter and petitioner were never married. Although Ms. Hunter did not live with petitioner, petitioner alleges that Ms. Hunter's daughters from a prior relationship, Shalethia Hunter and Shanae Hunter (collectively the children), resided with him during the years at issue. At all times relevant, the children were minors.
Although it appears that Ms. Hunter had full custody of the children, there is scant evidence in the record as to her employment history during the years at issue. According to petitioner, Ms. Hunter received public assistance during these years. Ms. Hunter had a total of five children, 2001 Tax Ct. Summary LEXIS 193">*195 including Shalethia and Shanae, although the record is unclear as to the other children's residence during the years at issue.
Petitioner testified that the children lived with him from 1995 through the spring of 1997, when his relationship with Ms. Hunter ended. Petitioner paid for the children's school supplies and some clothes; however, other relatives also assisted in purchasing their clothing. Petitioner took the children to school, and, on occasion, Sean Elms (Mr. Elms) watched them after school if petitioner worked during the afternoons. Petitioner further testified that he did not receive any monetary contributions from Ms. Hunter for the children's support.
Mr. Elms, a close family friend, also resided with petitioner during the years at issue. Petitioner claimed Mr. Elms as a "step-brother" although the record is clear that there is no legal relation between petitioner and Mr. Elms. Mr. Elms was not employed during the years at issue, and petitioner provided some financial support for Mr. Elms, primarily in the form of food and shelter. Mr. Elms did not receive public assistance during the years at issue.
Petitioner did not provide the Court with documentation of the amounts2001 Tax Ct. Summary LEXIS 193">*196 paid to substantiate the support provided to the children and Mr. Elms. Petitioner testified that "all my records for expenses were destroyed in a disaster in '98". However, the parties have stipulated that petitioner paid $ 4,200 and $ 4,320 in rent for 1995 and 1996, respectively.
On petitioner's respective 1995 and 1996 Federal income tax returns, he claimed dependency exemption deductions for the children and Mr. Elms, head of household filing status, and earned income credits. For each year, respondent disallowed the dependency exemption deductions because petitioner failed to establish that he was entitled to the exemptions. As a result of the disallowance, respondent further determined that petitioner's filing status was single, not head of household, and also disallowed the earned income credits.
DEPENDENCY EXEMPTION
The record based solely on petitioner's claimed contributions is incomplete. Petitioner did not present evidence to reconstruct the dollar amount of the total support for the individuals claimed for the years at issue. Total support includes, inter alia, the cost of food, clothing, education, household utilities, or home repair expenses necessary to maintain the household in 1995 and 1996. See
Furthermore, it is reasonable to infer that Ms. Hunter may have contributed a modicum amount to the support of her children. Ms. Hunter received public assistance during the years in issue, and without these amounts or additional amounts she may have received from her extended family we are unable to determine the total support available to the children by all able parties. Ms. Hunter did not testify at trial.
By failing to establish the total amount of support provided to the children from all sources, including Ms. Hunter's public assistance, we are unable to conclude that petitioner provided more than one-half of the children's total support during the years in issue. Furthermore, as to Mr. Elms, there is no corroborating2001 Tax Ct. Summary LEXIS 193">*199 evidence to substantiate petitioner's claimed dependency deduction. Therefore, we hold that petitioner is not entitled to
HEAD OF HOUSEHOLD STATUS
According to the relevant part of
Because we held above that petitioner is not entitled to a deduction for the children under the provisions of
2001 Tax Ct. Summary LEXIS 193">*200 EARNED INCOME CREDIT
The relevant parts of
Under the relationship test, the qualifying child must be a son or daughter, a stepson or stepdaughter, or a foster child of the taxpayer. See
To be considered an "eligible foster child", petitioner must show that he cared for each child as his own child, and that each child had the same principal place of abode as petitioner for the entire taxable year. See
Petitioner has failed to offer any evidence showing that his residence was the principal place of abode for the children other than his self-serving testimony. He did not have legal custody of the children, nor did he offer any documentation corroborating that2001 Tax Ct. Summary LEXIS 193">*201 they lived in his household during any part of the years in issue. This Court has previously recognized that the language of
Reviewed and adopted as the report of the Small Tax Case Division.
Decision will be entered for respondent.
1. A taxpayer will not be considered to be a head of household by reason of an individual who would not be a dependent for the taxable year but for