- 5 - The Standard Possession Order was in effect during the 2003 calendar year. Petitioner and Mr. Litton together provided more than half of the support for the children in 2003, and the children were in the custody of both parents for more than half of the year. Petitioner timely filed a Federal income tax return (Form 1040) for 2003. On her return, petitioner claimed dependency exemption deductions for her two children and the child tax credit. In the notice of deficiency, respondent disallowed the dependency exemption deductions “since another taxpayer has also claimed this dependent on their tax return.”4 Respondent also disallowed the child tax credit on the ground that petitioner was not entitled to claim the children as dependents. Discussion5 A. Dependency Exemption Deduction In general, a taxpayer may deduct an exemption for a dependent, such as a taxpayer’s child, over half of whose support is provided by the taxpayer. Secs. 151(a), (c)(1), 152(a). An 4 At trial, Mr. Litton testified that he claimed dependency exemption deductions for his son and daughter on his 2003 return. The record suggests that respondent did not challenge those deductions. 5 We decide this case on the basis of the evidence in the record without regard to the burden of proof. Accordingly, we need not decide whether the general rule of sec. 7491(a)(1) is applicable. See Higbee v. Commissioner, 116 T.C. 438 (2001).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011