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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).
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Last modified: May 25, 2011