- 3 - Petitioner timely filed his 1998 Federal income tax return as head of household. He reported adjusted gross income of $43,737. Petitioner claimed a dependency exemption deduction and the child tax credit for Amanda treating her as his “qualifying child”. Respondent issued a notice of deficiency determining that petitioner was not entitled to head of household filing status, the dependency exemption deduction, or the child tax credit because he failed to substantiate his claims. Discussion 1. Dependency Exemption Deduction Section 151(c) allows a taxpayer to deduct an exemption amount for each "dependent" as defined in section 152. Section 152(a) defines a dependent as a son or daughter of the taxpayer, “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)”. Section 152(e)(1), however, provides that if a child receives over half of his support during the calendar year from parents who are divorced under a decree of divorce and if the child is in the custody of one or both of his parents for more than half of the calendar year, then the child is treated “as receiving over half of his support during the calendar year from the parent having custody for a greater portion of the calendar year” (custodial parent).Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
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