James T. and Rebecca S. Werther - Page 9

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          section 152(e)(1) does apply.  Accordingly, petitioners are not             
          entitled to dependency exemption deductions for RW and MW for               
          2001.  See sec. 152(e)(1); Miller v. Commissioner, supra.                   
          Respondent’s determination on this issue is sustained.                      
          B.  Child Tax Credit                                                        
               Section 24(a) authorizes a child tax credit with respect to            
          each “qualifying child” of the taxpayer.  The term “qualifying              
          child” is defined in section 24(c).  As relevant here, a                    
          “qualifying child” means an individual with respect to whom the             
          taxpayer is allowed a deduction under section 151.  Sec.                    
          24(c)(1)(A).                                                                
               We have already held that petitioners are not entitled to              
          dependency exemption deductions under section 151 for RW and MW.            
          Accordingly, RW and MW are not considered “qualifying children”             
          within the meaning of section 24(c).  It follows, therefore, that           
          petitioners are not entitled to a child tax credit under section            
          24(a) with respect to RW and MW.                                            
               In view of the foregoing, we sustain respondent’s                      
          determination on this issue.                                                
               Furthermore, we have considered all of the other arguments             
          made by petitioners, and, to the extent that we have not                    
          specifically addressed them, we conclude they are without merit.            









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