- 3 - 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 thePage: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011