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Alexis never resided in Colorado during that year. Petitioner
earned $10,078 in wage income during 1998.
Petitioner filed a Federal income tax return for taxable
year 1998. On this return, he claimed a dependency exemption
deduction for Alexis, he claimed head of household filing status,
and he claimed an earned income credit with Alexis as a
qualifying child. Petitioner’s return stated that Alexis lived
with petitioner for 12 months during 1998. In the statutory
notice of deficiency, respondent disallowed the dependency
exemption deduction, changed petitioner’s filing status to
single, and disallowed in full the earned income credit.
The first issue for decision is whether petitioner is
entitled to a dependency exemption deduction for his daughter. A
deduction generally is allowed under section 151(a) for each
dependent of a taxpayer. Sec. 151(a), (c)(1). Subject to
exceptions and limitations not applicable here, a child of a
taxpayer is a dependent of the taxpayer only if the taxpayer
provides over half of the child’s support for the taxable year.
Sec. 152(a). A special rule applies to taxpayer-parents who are
divorced, who are separated, or who live apart from their spouses
for at least the last 6 months of the calendar year, but who have
custody of the child for more than half of the year. Sec.
152(e)(1). Under this rule, the parent with custody of the child
for the greater portion of the year (the “custodial parent”)
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