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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--
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Last modified: November 10, 2007