- 3 - 1998, the Family Court of the State of New York issued an order designating Ms. Kingston to be the custodial parent of Jude. In said order, petitioner was required to pay Ms. Kingston $61.40 per week for child support and $39.90 per week for child care expenses. The order was silent as to which parent was to claim a dependency exemption for the child for Federal income tax purposes. Respondent issued a notice of deficiency to petitioner pertaining to the 2001 taxable year. The notice of deficiency disallowed the dependency exemption for Jude because petitioner failed to establish that he was entitled to a dependency exemption. As a result of the disallowance of the deduction, respondent further determined that petitioner was not entitled to the child tax credit. Discussion A dependency exemption generally is allowed under section 151(a) for each dependent of a taxpayer. Sec. 151(a), (c)(1). In general, 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 (a) who are divorced, who are separated, or who live apart for at least the last 6 months of the calendar year, and (b) whose child is in the custody of one or both parents for more than half of the year. Sec. 152(e)(1). Under this rule, ifPage: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011