- 3 - qualifying children, stating that they were foster children who resided with him the entire year. In the statutory notice of deficiency, respondent changed petitioner’s filing status to married filing separately, disallowed each of the dependency exemption deductions, and disallowed the full amount of the claimed earned income credit for taxable year 1999. The first issue for decision is whether petitioner is entitled to three dependency exemption deductions. A deduction generally is allowed under section 151(a) for each dependent of a taxpayer. Sec. 151(a), (c)(1). Subject to exceptions and limitations not applicable here, an individual is a dependent of a taxpayer only if the taxpayer provides over half of the individual’s support for the taxable year. Sec. 152(a). During 1999, petitioner resided with Ms. Lipscomb and her three children. He earned $7,120 during that year, which is the only potential source of support for the children reflected in the record: Petitioner testified that Ms. Lipscomb was not receiving any public assistance while being unemployed and having three children to raise. Despite this testimony, we are convinced that the children had sources of support other than petitioner. Petitioner did not directly address what other sources were available to support the children, nor did he detail any expenses he paid for the children. See sec. 1.152-1(a),Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011