- 4 -
Section 151(c) allows taxpayers to deduct an annual
exemption amount for each “dependent” as defined in section 152.
Under section 152(a), the term “dependent” means certain
individuals, such as a son, daughter, stepson, or stepdaughter,
“over half of whose support, for the calendar year in which the
taxable year of the taxpayer begins, was received from the
taxpayer (or is treated under subsection (c) or (e) as received
from the taxpayer)”.
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 are divorced under a decree of
divorce; and (3) such child is in the custody of one or both of
his parents for more than one-half of the calendar year. If
these requirements are satisfied, as in the present case, the
“child shall be treated, for purposes of subsection (a), as
receiving over half of his support during the calendar year from
the parent having custody for a greater portion of the calendar
year (* * * referred to as the ‘custodial parent’)”, thus
allowing the dependency exemption to be claimed by the “custodial
parent”. Sec. 152(e)(1).
To decide who has custody, section 1.152-4(b), Income Tax
Regs., provides that custody “will be determined by the terms of
the most recent decree of divorce” if there is one in effect.
Since petitioner’s divorce decree declares that the primary
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011