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subsequent section references are to the Internal Revenue Code in
effect for the year in issue, and all Rule references are to the
Tax Court Rules of Practice and Procedure.
Respondent determined a $1,458 deficiency in petitioner’s
2003 Federal income tax. The issues for decision are whether
petitioner is entitled to a: (1) Dependency exemption deduction;
and (2) child tax credit.
Background
Some of the facts have been stipulated and are so found.
The stipulation of facts and the exhibits received into evidence
are incorporated herein by reference. At the time the petition
was filed, petitioner resided in Sylvan Beach, New York.
Petitioner and Diane E. Spuches (former spouse) obtained a
judgment of divorce in 1994. Their marriage had produced two
daughters (the children). In the divorce proceedings, a
stipulation was entered that provided that petitioner would claim
both dependency exemption deductions until his former spouse was
employed and had incurred a tax liability. On the happening of
that event, the dependency exemption deductions were to be
divided between petitioner and his former spouse. Additionally,
the former spouse was awarded primary custody.
The former spouse’s 2003 Federal income tax return showed
sufficient adjusted gross income to require her to file, and she
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