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benefits of approximately $300 per month. Petitioner traveled to
North Carolina about four or five times a year to visit Ms.
Williams and to maintain the Asheville residence. During 1997
petitioner painted the Asheville residence. Petitioner testified
that he provided financial support to Ms. Williams of
approximately $200 per month during 1997.
On petitioner’s 1997 Federal income tax return, he claimed
dependency exemption deductions for the children and for Ms.
Williams and an earned income credit. Respondent disallowed the
dependency exemption deductions because petitioner failed to
establish that he was entitled to claim them as dependents. As a
result of the disallowance, respondent further disallowed the
earned income credit.
Dependency Exemption
Section 151(c) allows a taxpayer to deduct an annual
exemption amount for each dependent of the taxpayer. A
taxpayer’s mother and children qualify as dependents so long as
the taxpayer provided more than half of the support to each
dependent. Sec. 152(a)(1), (4); sec. 1.152-1(a)(1), Income Tax
Regs.
As to the children, the support test in section 152(e)(1)
applies if: (1) A child receives over half of his support during
the calendar year from his parents; (2) the parents live apart at
all times during the last 6 months of the calendar year; and (3)
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