                          T.C. Memo. 1999-168



                        UNITED STATES TAX COURT



                    MARC ERIC VIDMAR, Petitioner v.
             COMMISSIONER OF INTERNAL REVENUE, Respondent



        Docket No. 12730-98.             Filed May 18, 1999.


        Marc Eric Vidmar, pro se.

        John M. Tkacik, Jr., for respondent.



                MEMORANDUM FINDINGS OF FACT AND OPINION


        ARMEN, Special Trial Judge:   This case was heard pursuant to

the provisions of section 7443A(b)(3) and Rules 180, 181, and

182.1



        1
       Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the taxable years in
issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
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     Respondent determined deficiencies in petitioner's Federal

income taxes for the taxable years 1996 and 1997 in the amounts

of $2,375 and $2,754, respectively.

     The issues for decision are as follows:

     (1) Whether petitioner is entitled to a dependency exemption

for Apollonia Shaia Johnson.   We hold that he is.

     (2) Whether petitioner is entitled to head-of-household

filing status.   We hold that he is.

     (3) Whether petitioner is entitled to the earned income

credit in the amounts claimed by petitioner.   We hold that he is.

                         FINDINGS OF FACT

     Some of the facts have been stipulated, and they are so

found.   Petitioner resided in Cleveland Heights, Ohio, at the

time that his petition was filed with the Court.

     Petitioner was not married during the years in issue.    He is

the father of Apollonia Shaia Johnson (Apollonia).   Apollonia was

born in October 1987.   Petitioner and Apollonia's mother,

Jacqueline Johnson (Jacqueline), have never been married to each

other.   Petitioner and Jacqueline lived together from sometime

before Apollonia's birth in 1987 to 1990.   In 1990, Jacqueline

moved to California taking Apollonia with her.   However, sometime

in 1991, Jacqueline sent Apollonia to live with petitioner.

Apollonia has been living with petitioner since that time.
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Throughout the years in issue, petitioner provided all financial

support for Apollonia.

     On his income tax returns for 1996 and 1997, petitioner

reported gross income in the amounts of $8,047 and $10,446,

respectively.   For both years in issue, petitioner claimed a

dependency exemption for Apollonia and head-of-household filing

status.   In addition, petitioner claimed the earned income credit

in the amounts of $2,152 and $2,210 for 1996 and 1997,

respectively.   In this regard, petitioner attached Schedule EIC

to his return for each year indicating thereon that he was basing

his claim for the credit on Apollonia.

     In the notice of deficiency, respondent disallowed the

dependency exemption claimed by petitioner for Apollonia for both

years in issue.   Respondent also determined that petitioner was

not entitled to head-of-household filing status; rather,

respondent determined that petitioner's filing status was that of

a single individual.    Finally, respondent determined that

petitioner was only entitled to an earned income credit in the

amount of $113 for 1996, and that petitioner was not entitled to

any earned income credit for 1997.

                               OPINION

     We begin with the dependency exemption issue.

     A taxpayer is allowed as a deduction an exemption for each

qualifying dependent.    See sec. 151(c)(1).   A dependent is
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defined as an individual: (1) Who is either related to the

taxpayer in one of the ways enumerated in section 152(a)(1)

through (8) or is a member of the taxpayer's household, and (2)

who receives over half of his or her support from the taxpayer.

See sec. 152(a).    A son or a daughter of a taxpayer may qualify

as a dependent.    See sec. 152(a)(1).   As we have found,

petitioner provided all of the support for his daughter Apollonia

during the years in issue and is therefore entitled to a

dependency exemption for her for each of those years.

     We now turn to the filing status issue.

     In order to qualify for head-of-household filing status,

petitioner must satisfy the requirements of section 2(b).

Pursuant to that section, and as relevant herein, an individual

qualifies as a head of household if the individual is not married

at the close of the taxable year and maintains as his home a

household that constitutes for more than one-half of the taxable

year, the principal place of abode of a son or daughter of the

taxpayer.   See sec. 2(b)(1)(A)(i).     A taxpayer is considered as

maintaining a household only if over half of the cost of

maintaining the household during the taxable year is furnished by

the taxpayer.   See sec. 2(b)(1).

     Petitioner was not married at the close of either 1996 or

1997.   Further, petitioner furnished all of the cost of

maintaining the requisite household for his daughter, Apollonia.

Petitioner therefore qualifies for head-of-household filing

status for both years in issue.
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     Finally, we turn to the earned income credit issue.

6    In the case of an eligible individual, section 32(a) allows

an earned income credit against the individual's income tax

liability.   As relevant herein, an "eligible individual" is

defined as an individual who has a "qualifying child" for the

taxable year.   Sec. 32(c)(1)(A).   Respondent claims that during

the years in issue Apollonia was not a qualifying child.     We

disagree.

     Apollonia qualifies as a "qualifying child" pursuant to the

requirements set forth in section 32(c)(3)(A)(i through iii).     In

this regard, Apollonia is petitioner's daughter and satisfies the

relationship test.   See sec. 32(c)(3)(A)(i), (B)(i)(I).    Further,

Apollonia resided with petitioner throughout the years in issue

and satisfies the residency test.   See sec. 32(c)(3)(A)(ii).

Finally, Apollonia was under 19 years of age during both years in

issue and satisfies the age test.   See sec. 32(c)(3)(A)(iii),

(C)(i).   In view of the foregoing, petitioner is entitled to the

earned income credit based on one qualifying child as claimed on

his returns for the years in issue.

     To reflect our disposition of the disputed issues,



                                            Decision will be entered

                                       for petitioner.
