TAX COURT OPINION

Case: Xhevair Ferko
Docket Number: 14088-05S
Judge: Ruwe
Opinion Type: summary
Filed: 09/26/2006
Pages: 6

T .C . Summary Opinion 2006-15 8 I UNITED STATES TAX COUR T XHEVAIR FERKO, Petitioner v . COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No . 14088-05S . Filed September 26, 2006 . Xhevair Ferko, pro se . Carrie L . Kleinjan , for respondent . RUWE, Judge : This case was heard pursuant to section 74631 in effect when the petition was filed . The decision to be entered is not reviewable by any other court, and this opinion should not be cited as authority . 1 Unless otherwise indicated, section references are to the Internal Revenue Code in effect for the year in issue . SERVED SEP 'z b LL'u 2 - Respondent determined a deficiency of $2,903 in petitioner's 2004 Federal income tax . The issues for decision are : (1) Whether petitioner ' s proper filing status is head of household, as petitioner contends , or married filing separately, as respondent contends , and (2 ) whether petitioner is entitled to claim an earned income credit . Background Some facts have been stipulated and are so found . The stipulation of facts and the attached exhibits are incorporated by this reference . When the petition was filed, petitioner resided in Philadelphia , Pennsylvania . Respondent received petitioner's 2004 Federal income tax return on April 15, 2005 . Petitioner reported an earned income credit of $ 2,903 , claimed two dependents ,2 and reported his filing status as single . Respondent mailed to petitioner a notice of deficiency disallowing the earned income credit and determining a deficiency of $2,903 . Respondent also changed petitioner's filing status from single to married filing separately . Petitioner was legally married to Vera Ferko throughout 2004 . At no time did petitioner and Mrs . Ferko have a legal separation . Petitioner, his spouse, and their four childre n 2 Petitioner claims to care for only two of his four children that live in the house while his wife cares for the other two children . - 3 - resided in the same house on Cambria Street in Philadelphia, Pennsylvania until November 21, . 2004,1 when they moved to Englewood Street in Philadelphia, where they continue to live in the same . house . The Cambria Street residence consisted of three bedrooms, one kitchen, a living room, a dining room, and two entrances . The Englewood Street residence is similar, but slightly larger . Both houses are single family residences . 1 . Head of Household Filing Statu s Discussion Section 2(b) defines head of household . As relevant here, section 2(b)(1) provides that an individual shall be considered a head of a household if such individual is not married at the close of the taxable year . An individual shall be treated as not married at the close of the taxable year if such individual is so treated under the provisions of section 7703(b) . Sec . 2(c) . Section 7703(b) provides that an individual who is married shall not be considered as married if four requirements are satisfied : (1) The individual files separately ; (2) the individual maintains as his home a household which constitutes for more than one-half of the taxable year the principal place of abode of a child who is the tax dependent of such individual ; (3 ) 3 Petitioner originally testified that the family moved o n Nov . 21, 2005, but the rest of the record establishes Nov . 21 , We treat Nov . 21, 2004, as the 2004 , date the date they moved . a s of the move . 4 - the individual furnishes over one-half the cost of maintaining such household during the taxable year ; and (4) for the last 6 months of the taxable year, the individual's spouse is not a member of such household . Petitioner and Mrs . Ferko were married throughout the 2004 tax year . Petitioner, his spouse, and their children lived in the same house from January 2004 until they moved on November 21, 2004 . After the move, they all continued to reside together in the new residence through the remainder of 2004 . Petitioner contends that although he and his wife shared these houses, since 2003 they have lived as if they were separated and maintained separate households . The pivotal issue is whether petitioner and Mrs . Ferko were living apart in separate households . If they were not living apart in separate households, then section 7703(b) would not have applied and petitioner's filing status was married filing separately and not head of household . The concept of "living apart" has been considered by this and other courts . Generally, "living apart" connotes living in separate residences . Lvddan v . United States , 721 F .2d 873, 876 (2d Cir . 1983) ; Washington v . Commissioner , 77 T .C . 601, 60 4 (1981) . The Court of Appeals for the Eighth Circuit disagreed with the general view of "living apart", finding that such a determination should be made based on the facts and circumstances - 5 - of the case . Sydnes v . Commissioner , 577 F .2d 60, 62 (8th Cir . 1978), affg . in part and revg . and remanding in part 68 T .C . 170 (1977) . The Tax Court has continued to follow the views expressed in Washington v . Commissioner , supra at 604-605, in which we stated that "the Court should not be required to delve into the intimate question of whether husband and wife are in fact living apar t while residing in the same house ." See McAdams v . Commissioner , 118 T .C . 373, 378 (2002) ; Chiosie v . Commissioner , T .C . Memo . 2000-117 ; Dawkins v . Commissioner , T .C . Memo . 1991-225 . In relation to sections 2 and 7703, we have held that living apart required geographical separation and living in separate residences . See McAdams v . Commissioner , supra (citing Chiosie v . Commissioner , supra , Hopkins v . Commissioner , T .C . Memo . 1992- 326) . In view of the foregoing, we hold that petitioner and his wife were not living apart in 2004 . Accordingly, petitioner is not considered unmarried pursuant to section 7703(b), and his filing status is married filing separately . 2 . Earned Income Credi t Section 32 provides that certain individuals may be entitled to an earned income credit if they satisfy certain requirements . One of the requirements is that the taxpayer, if married (within 6 - the meaning of section 7703), must file a joint return with his or her spouse . Sec . 32(d) . We have already found that petitioner was married throughout 2004 . Because petitioner failed to file a joint return for 2004, we hold that he is not entitled to an earned income credi t pursuant to section 32 . See Chiosie v . Commissioner , supra . To reflect the foregoing, Decision will be entere d for respondent .