- 5 -
OPINION
A. Applicable Code Sections and Regulations
Section 151 provides a tax exemption as a deduction in
computing taxable income for a taxpayer’s dependents (dependency
exemption). Section 152(a) defines “dependent” to include the
son or daughter of a taxpayer, over half of whose support was
received from the taxpayer for the calendar year in which the
applicable taxable year begins. Section 24 provides a credit
against income tax for each qualified child of a taxpayer who is
under 17 years of age, but the applicable statutory definition of
a qualified child is one for whom a taxpayer may claim a
deduction under section 151. Sec. 24(c)(1)(A). Thus, a taxpayer
is ineligible for the child tax credit under section 24 unless
eligible for the dependency exemption under section 151.
Where the parents of a dependent child are divorced or
legally separated, section 152(e)(1) generally confers the
dependency exemption onto the parent having custody of the child
for the greater portion of the calendar year (custodial parent).3
As an exception to the general rule, a noncustodial parent may
claim the exemption where the custodial parent executes a valid
written declaration releasing his or her claim to the exemption,
3Sec. 152(e)(1) establishes a support test outlining the
specific requirements for a custodial parent to qualify for this
exemption. Because the issue here involves whether the custodial
parent released her claim to the exemption, and neither party
disputes Mrs. Norris’s satisfaction of the support test, we
decline to discuss it further here.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: November 10, 2007