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three children due to lack of substantiation, but respondent has
now conceded that petitioners are entitled to a dependency
exemption deduction and child tax credit for each of their other
three children.
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). 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--
(A) a child (as defined in section
151(c)(3)) receives over half of his support
during the calendar year from his parents--
(I) who are divorced or legally
separated under a decree of divorce or
separate maintenance,
(ii) who are separated under a
written separation agreement, or
(iii) who live apart at all times
during the last 6 months of the calendar
year, and
(B) such child is in the custody of one
or both of his parents for more than one-half
of the calendar year,
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Last modified: March 27, 2008