Harold Lee and Melissa Diane Thomas - Page 4

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               Petitioners filed a joint Federal income tax return for                
          taxable year 1998.  On this return, they claimed a dependency               
          exemption deduction and child tax credit for Jonathan.                      
          Petitioners did not attach to the return a written declaration              
          entitling them to the dependency exemption deduction.  In the               
          statutory notice of deficiency, respondent disallowed the                   
          deduction and credit claimed for Jonathan.                                  
               A deduction generally is allowed for each dependent of a               
          taxpayer under section 151.  Sec. 151(a), (c)(1).  As a general             
          rule, a child of a taxpayer is a dependent of the taxpayer only             
          if the taxpayer provides over half of the child’s support for the           
          taxable year.  Sec. 152(a).  A special rule applies to taxpayer-            
          parents who are divorced, who are separated, or who live                    
          separately for at least the last 6 months of the calendar year,             
          but who have custody of the child for more than half of the year            
          and who together provide over half of the child’s support.  Sec.            
          152(e)(1).  Under this rule, the parent with custody of the child           
          for the greater portion of the year (the “custodial parent”)                
          generally is treated as having provided over half of the child’s            
          support, regardless of which parent actually provided the                   
          support.  Id.; sec. 1.152-4(b), Income Tax Regs.  An exception to           
          this special rule exists which entitles the noncustodial parent             
          to the dependency exemption deduction.  Sec. 152(e)(2).  For the            
          exception to apply, the custodial parent must sign a written                
          declaration releasing his or her claim to the deduction, and the            




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