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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).
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Last modified: May 25, 2011