- 4 -
A. Dependency Exemption Deduction
A taxpayer may be entitled to claim a dependency exemption
deduction for each individual who qualifies as the taxpayer’s
dependent under sections 151 and 152. Secs. 151(a), (c), and
152. An individual must meet the following five tests in order
to qualify as a dependent of the taxpayer: (1) Support test; (2)
relationship or household test; (3) citizenship or residency
test; (4) gross income test; and (5) joint return test. Secs.
151 and 152.
As relevant herein, the citizenship or residency test
requires that the dependent be a U.S. citizen or national, or
resident of the United States, Canada, or Mexico at some time
during the calendar year in which the taxable year of the
taxpayer begins. Sec. 152(b)(3); sec. 1.152-2(a)(1), Income Tax
Regs.
On their 2000 return, petitioners claimed a dependency
exemption deduction for S.G. In the notice of deficiency,
respondent disallowed the exemption on the basis that S.G. failed
to qualify as a dependent under the citizenship or residency
test.
S.G. is not a U.S. citizen or national, or resident of the
United States, Canada, or Mexico. Rather, S.G. is a British
citizen. Moreover, petitioners and S.G. resided in the
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011