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hair stylist and group counselor. Ms. Floyd also provided
clothing and other items for the children and paid medical
expenses for them.
Petitioner alleges he and Ms. Floyd reached an oral
agreement that each of them would claim one dependency exemption
on their income tax returns for 1998. Ms. Floyd would claim the
exemption for their daughter, Dawnielle, and petitioner would
claim the exemption for their son, Donnell II. Ms. Floyd denied
such an agreement, and no written document or agreement to that
effect was offered into evidence.
Petitioner’s adjusted gross income was $10,608 for 1998. On
his 1998 return, petitioner claimed head-of-household filing
status, a dependency exemption deduction for his son, Donnell II,
and an earned income credit of $2,271, with Donnell II reported
as the qualifying child. Petitioner did not claim a dependency
exemption for his daughter, Dawnielle. On her 1998 return, Ms.
Floyd claimed dependency exemption deductions for both children.
In the notice of deficiency, respondent determined
petitioner’s filing status as married filing separately. In
addition, respondent disallowed petitioner’s dependency exemption
for his son and disallowed the claimed earned income credit.
The first issue for decision is whether petitioner is
entitled to the dependency exemption deduction for his son.
Section 151(c) allows taxpayers to deduct an annual exemption
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Last modified: May 25, 2011