- 5 - Nevertheless, the order provides that Mr. Beeghly was to have physical custody of Shelby on Christmas Day that year. With respect to other 1997 holidays, petitioner had actual, physical custody of Shelby on New Year’s Day, Easter, and Thanksgiving. Mr. Beeghly had actual, physical custody of Shelby on Labor Day. For 1998, pursuant to the schedule set forth in the order, petitioner was awarded physical custody of Shelby for specific periods for a total of 182 days, and Mr. Beeghly was awarded physical custody of Shelby for a specific period for a total of 183 days.2 As relevant here, on her Federal income tax return for each year in issue, petitioner computed her Federal income tax liability taking into account the following: (1) Head of household filing status and the appropriate standard deduction; (2) a dependency exemption deduction for Shelby; (3) a child tax credit (1998 only); (4) a credit for child care expenses; and (5) an earned income credit computed by treating Shelby as a qualifying child. For each year, respondent determined that petitioner was not entitled to a dependency exemption deduction for Shelby because she did not establish that she was Shelby’s custodial parent for a greater portion of the year. Other adjustments made in the notice of deficiency need not be discussed. 2 There were 365 days in each year in issue.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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