John B. Anderson - Page 3

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                              Respondent determined a deficiency of $1,363 in petitioner’s                                                                                 
                    Federal income tax for 2003.  The issues for decision are whether                                                                                      
                    petitioner is entitled to claim a dependency exemption deduction                                                                                       
                    for his daughter and whether petitioner is entitled to a child                                                                                         
                    tax credit.                                                                                                                                            
                                                                           Background                                                                                      
                              Petitioner resided in Huntington, West Virginia, at the time                                                                                 
                    he filed his petition.                                                                                                                                 
                              Petitioner is the unmarried father of J.W.  In compliance                                                                                    
                    with a November 5, 1997, child support order issued by the                                                                                             
                    Circuit Court of Cabell County, West Virginia, petitioner paid                                                                                         
                    nearly 90 percent of the total determined support obligation for                                                                                       
                    J.W. in 2003, and he maintained health insurance on J.W.’s                                                                                             
                    behalf.  J.W.’s mother is the custodial parent of J.W.                                                                                                 
                              Petitioner claimed a deduction for a dependency exemption                                                                                    
                    and a child tax credit for J.W. on his 2003 tax return.                                                                                                
                    Respondent disallowed the dependency exemption and the child tax                                                                                       
                    credit, explaining in the notice of deficiency that “whoever has                                                                                       
                    been appointed custodial parent by the court system is entitled                                                                                        
                    to the dependent exemption unless he or she expressly waives the                                                                                       
                    right to claim the exemption.”  The notice also explained that,                                                                                        
                    because the child tax credit can be claimed only by a taxpayer                                                                                         
                    who is eligible to claim the dependency exemption deduction, the                                                                                       
                    child tax credit petitioner claimed for 2003 was also disallowed.                                                                                      






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