Vitally V. and Svetlana N. Andrukov - Page 4




                                        - 3 -                                         
          well as the EIC and child tax credits in relation thereto, on her           
          Federal income tax return for 2004.                                         
               Petitioners also claimed dependency exemption deductions for           
          petitioner’s two children with Tanya Andrukov, as well as a                 
          dependency exemption deduction for petitioners’ son, and the                
          related EIC and child tax credits on their Federal income tax               
          return for 2004.  Because petitioners failed to attach a                    
          Form 8332, Release of Claim to Exemption for Child of Divorced or           
          Separated Parents, to their return, respondent disallowed their             
          claims.  Respondent has now conceded that petitioners are                   
          entitled to a dependency exemption deduction for their son,                 
          although that amount was also disallowed in the notice of                   
          deficiency.                                                                 
                                     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--                    







Page:  Previous  1  2  3  4  5  6  7  Next 

Last modified: November 10, 2007