5 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 grants custody of each of the five children to his ex-wife, Grace Williams, she is considered the children's "custodial parent" under section 152(e). As the "noncustodial parent", petitioner is treated as providing over half of a child's support and allowed to claim such child as a dependent if any one of three statutory exceptions is met: (1)(a) The custodial parent signs a written declaration that such custodial parent will not claim such child as a dependent, and (b) the noncustodial parent attaches such written declaration to the noncustodial parent's return for the taxable year (section 152(e)(2)); (2) a multiple support agreement pursuant to section 152(c) determines support (section 152(e)(3)); or (3)(a) a qualified pre-1985 instrument provides that the noncustodial parent shall be entitled to any deduction allowable under section 151 for such child, and (b) the noncustodial parent provides at least $600 for the support of such child during the calendar year (section 152(e)(4)). A threshold requirement for the applicability of the special rules of section 152(e) in the case of divorced parents is that the parents must provide over one-half of the child's support. Sec. 1.152-4(a), Income Tax Regs. Therefore, if a third party, such as a Federal or State agency, were to provide 50 percent or more of a child's support, neither parent would be entitled toPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011