TAX COURT OPINION

Case: Toya Deloach
Docket Number: 26839-06S
Judge: Colvin
Opinion Type: bench
Filed: 06/03/2008
Pages: 10

I ADM . FTA~ RECORD130 SERVIC E CAL STAT S .T . JUDGE FIL ES UNITED STATES TAX COUR T WASHINGTON , DC 2021 7 TOYA DELOACH, Petitioner v . ) Docket No . 26839-06S . COMMISSIONER OF INTERNAL REVENUE , Respondent O R D E R Pursuant to Rule 152(b), Tax Court Iules of Practice and Procedure, it is ORDERED that the Clerk of the Court shall transmit herewith to petitioner and to respondent a copy o the pages of the transcript of the hearing in the above c se before Judg e Michael B . Thornton at New York, New Yor (Newark at New York) on April 7, 2008, containing his oral findi gs of fact and opinion rendered at the conclusion of the hearin . In accordance with the oral finding, of fact and opinion, decision will be entered for respondent . (Signed) Michael B. Thornton Judge Dated : Washington, D .C . June 3, 2008 SERVED JUN - 5 2008 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 Bench Opinion by Judge Michael B . Thornto n A p ril 7 , 200 8 Toya DeLoach v . Commissioner Docket No . 26839-06 S THE COURT : The Cour has decided to rende r oral findings of fact and opinion in this case and th e following represents the Court s oral findings of fac t and opinion . The oral finding of fact and opinio n shall not be relied upon as precedent in any othe r case . This case was heard ursuant to th e provisions of Section 7463 of 1 he Internal Revenu e Code in effect at the time tha the petition wa s filed . Pursuant to Section 74 3(b), the decision t o be entered is not reviewable b any other court . This bench decision is made pursuant to th e authority granted by Section 7459(b) and Rule 152 . Section references are to the Internal Revenue Code i n effect for the taxable years at issue . This case was tried o April 7, 2008, in Ne w York, New York . The Petitioner appeared pro se . Orsolya Kun represented the Res ondent . The Respondent determined a deficiency i n the Petitioner's 2005 Federal I come of $6,344 . The issues for decision are whether the Petitioner i s entitled to claim for the tax y ar 2005 fou r Heritage Reporting orporation (202) 628-4 88 4 1 dependency exemptions, head of household filing 2 status, the earned income tax redit, the child tax 3 credit for three qualifying children, and the child 4 care credit . 5 FINDINGS OF FACT 6 Some of the facts ha e been stipulated and 7 are so found . The stipulation of facts and the 8 accompanying exhibits are incor porated by thi s 9 reference . The Petitioner resi ded in New York whe n 10 her petition was filed . 11 For the taxable year X2005, the Petitione r 12 filed a Form 1040 claiming four dependency exemptions 13 for these four individuals : (1 J .B ., listed on the 14 return as "niece" ; (2) T .H ., al o listed as "niece" ; 15 (3) S .C ., listed as "nephew" ; a d Erine Fields, listed 16 as "other" . 17 The Petitioner now co tends that J .B ., T .H .x~ 18 and S .C . were godchildren . The did not live with her 19 in 2005, but would visit on occ sion . Erine Field s 20 was the man who the Petitioner arried in 2006 . The 21 Petitioner claims that he lived in a house with the 22 Petitioner and her family in 20 5 . 23 On her 2005 Form 1040, the Petitioner also 24 claimed head of household filin status, the earned 25 income credit, the child tax credit for thre e Heritage Reporting C rporation (202) 628-48 8 1 2 3 4 5 6 7 8 9 1 0 1 1 12 13 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 25 5 qualifying children, and the c ild care credit . In the notice of de f ciency the Respondent disallowed the head of househo d filing status, al l four dependency exemptions, t h earned income credit, and the child tax credit for t ree qualifyin g children, and the child care c edit . OPINION The burden of proof is on the Petitioner to show that she meets the releva t legal requirements to establish her claimed dependency exemptions and other tax benefits that are at issue in this case . See Rule 142(a) . A . Dependency exempti n deductions . A taxpayer may be ent tled to a dependenc y exemption deduction for each of his or her dependents . Section 151(a), (c) . However, taxpayer is entitle d to claim a dependency deduction only if the claime d dependent is a "qualifying child" or a "qualifying relative" under Section 152(c), or (d), or Sectio n 152 (a) . Under Section 152(c)( ) (A) , a qualifying child is a child who bears a bl od relationship to the taxpayer as described in Sectio 152(c)(2), or else who is legally adopted by, or i an eligible foster child of the taxpayer . Section 152(f)(1)(A)(ii), (b) . Heritage Reporting C rporation (202) 628-48 8 1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 14 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 25 6 The Petitioner has n t adopted any child, nor is she related to J .B ., Z S .C ., or Erine Fields, by blood or marriage . Thus, the Petitioner has failed to establish that J B ., T .H ., S .C ., o r Erine Fields is a qualifying c ild as to the petition . Similarly, because J B ., T .H ., S .C ., and Erine Fields, were not relate d to the Petitioner by blood or marriage, nor were t h y adopted by th e Petitioner, they do not meet t e test of a qualifying relative under Sections 152(d ) 2) (A) through (G) . Under Section 152(d ) 2)(H), an individual may be considered a relative u der Section 152(d)(2) even though not related to the taxpayer in the traditional sense if that pers n : (1) is not the taxpayer 's spouse ; (2) has the same principal place of abode as the taxpayer ; and (3 ) is a member of the taxpayer's household during t h taxable year . Section 152 (d) ( 2) (H) . In order for an ind i idual to be considere d a member of the taxpayer's hou ehold, the taxpaye r must maintain the household, an d both the taxpayer an d the individual must occupy th e household for the taxable year . Section 1 .152-1 ( b), Income Tax Regs . A taxpayer maintains a household when he pays more than half of the expenses for the household . Heritage Reporting orporation (202) 628-4 88 1 Rev . Rul . 64 -41, I qI0M-I <Eu4 ► ) q4 (1964) 1 ' . ° . 04 . The record does no t 7 2 provide us with sufficient evidence that in 2005 the 3 Petitioner maintained the household that she shared 4 with her family . 5 Moreover, J .B ., T .H ., and S .C . did not 6 occupy the same principal place of abode as th e 7 Petitioner . Thus, J .B ., T .H ., S .C ., and Erine Fields, 8 are not considered related to the Petitioner for th e CH) 9 purposes of Section 152(b) (1) {* . In P1 10 In any event the Petitioner has failed to 11 show that she provided over half of the total support 12 for J .B ., T .H ., S .C ., or Erine Fields, as required by 13 Section 152 (b) (1) (C) . 14 In order to meet this burden of support the 15 Petitioner must establish by competent evidence th e 16 total amount of support furnished for the taxable year 17 at issue . See Blanco v . Commissioner , 56 T .C . ~~ 5 5 , 18 514-515 (1971) . ' 19 Support includes "food, shelter, clothing, 20 medical and dental care, education, and the like . " 21 Section 1 .152 -1(a)(2) t), Income Tax Regs . CA-) 22 As previously indicated , the Petitione r 23 offered little evidence as to the total sources of 24 support or her share of support for J .B ., T .H ., S .C ., 25 and Erine Fields . The evidence in the record i s Heritage Reporting Corporation (202) 628-4888 8 1 insufficient to establish the otal cost of the 2 children's or Erine Field's su port during this 3 period . 4 Thus, the Petitioner failed to establis h 5 that she provided more than ha f of the children's or 6 Erine Field's support for 2005 The Petitioner has 7 failed to prove that J .B ., T .H , S .C ., or Erine Fields 8 is a qualified relative . Beca se neither J .B ., T .H ., 9 S .C ., nor Erine Fields may be onsidered a qualifyin g 10 child or a qualifying relative the Petitioner is not 11 entitled to a dependency exemp ion deduction for any 12 of these individuals . The Res ondent's determination 13 on this issue is sustained . 14 B . Child Tax Creditsl . 15 Section 24(a) provides for a "credit agains t Ae . 16 -a-tax^for the taxable year wit h ~~a 17 qualifying child f-er th e 18 24(c)(1) provides that for pure ses of Section 24, 19 "qualifying child" means an individual under age 17 20 who is a qualifying child of th taxpayer as define d 21 in Section 152(c) . 22 As discussed above, n ither J .B ., T .H . , 23 S .C ., nor Erine Fields, is a qu lifying child of the 24 Petitioner under Section 152(c) . Therefore, th e 25 Petitioner has not established that any of these Heritage Reporting Corporatio n (202) 628-4888 1 2 3 4 5 6 7 8 9 1 0 1 1 12 13 14 15 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 25 9 individuals was a qualifying child for the purposes of Section 24 . Thus, the Petition r is not entitled to a child tax credit for J .B ., T .H ., S .C ., or Erin e Fields . The Respondent's deter ination on this issue is sustained . C . Head of Househol Filing Status . To qualify as a head of household, the taxpayer must maintain at his r her home a household that is the principal place of abode for more than half of the taxable year of an individual who qualifies as the taxpayer's de endent under Section 1511 Section 2 (b) (1) (A) (ii ) Section 151(c) allow an exemption for each individual who is a dependent f the taxpayer, as defined in Section 152(a) for the taxable year in question . Further, Section 152(a)(1) and (2) defines a dependent as a qualifying c ild or a qualifying relative . As previously discu sed, neither J .B ., T .H ., S .C ., nor Erine Fields, was a qualifying child or a qualifying relative of the Pe itioner . Because th e Petitioner had no dependents s required under Section 152, she is not entitled to h ad of household filing status for 2005 . The Respond nt's determination o n this issue is sustained . Heritage Reporti Corporation n (202) 628 . 4888 D . Earned Income C r dit . Section 32(a) provid s for an earned income 1 0 credit in the case of an eligible individual . Section 32 (c) (1 ) (A) (-a , in pertinent part, defines a n (A) "eligible individual" as "any individual who has a n Ir qualifying child for the taxa : le year ." A qualifying child s a child of the taxpayer as defined in Sectio . 152 (c) . Sectio n 32(c)(3) . As stated above, n ither J .B ., T .H ., S .C ., nor Erine Fields was the Peti ioner's qualifying chil d for 2005 . Thus, the Petition r is not entitled to an earned income credit . The Re pondent's determination on this issue is sustained . E . Child Care Credi Section 21(a) provi es a credit for dependent care necessary for ainful employment in the case of a qualifying individu 1 . Section 21(b)(1) requires, in part, that a "qu lifying individual" is a dependent of the taxpayer as efined in Sectio n 152(a) . Because the Petitio er had no dependents as defined in Section 151, she i not entitled to the child care credit . To reflec the foregoing, a decision will be entered fo r he Respondent . This concludes the Court's findings of fact Heritage Reporting Corporation (202) 628-4888 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 25 1 and opinion in this case . 2 (Whereupon, at 3 :28 .m ., the bench opinio n 3 in the above-entitled matter has concluded . ) 1 1 4 5 6 7 8 9 10 11 12 13 / / 14 15 16 17 18 19 20 21 22 23 24 25 // Heritage Reporti Corporation (202) 62T4888