- 3 -- 3 - Discussion The Internal Revenue Code allows as a deduction an exemption for each dependent of a taxpayer in computing taxable income. Sec. 151(c). A child of a taxpayer is generally a qualified dependent only if the taxpayer provides over half of the child’s support during the taxable year. Sec. 152(a)(1). However, section 152(e)(1) limits the dependency exemption where the child’s parents live apart, as follows: SEC. 152(e). Support Test in Case of Child of Divorced Parents, Etc.–- (1) Custodial parent gets exemption.–-Except as otherwise provided in this subsection, if-- (A) a child (as defined in section 151(c)(3)) receives over half of his support during the calendar year from his parents-- (i) who are divorced or legally separated under a decree of divorce or separate maintenance, (ii) who are separated under a written separation agreement, or (iii) who live apart at all times during the last 6 months of the calendar year, and (B) such child is in the custody of one or both of his parents for more than one-half of the calendar year, such child shall be treated, for purposes of subsection (a), as receiving over half of his support during the calendar year from the parent having custody for a greater portion of the calendar year (hereinafter in this subsection referred to as the “custodial parent”).Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011