T.C. Memo. 2005-152

UNITED STATES TAX COURT

PAUL O’NEIL POWERS, Petitioner v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

Docket No. 1203-04. Filed June 23, 2005. 

Paul O’Neil Powers, pro se.

Donna B. Read, for respondent.

MEMORANDUM FINDINGS OF FACT AND OPINION

VASQUEZ, Judge: Respondent determined a deficiency of

$4,167 in petitioner’s 2001 Federal income tax. 

The two issues for decision are: (1) Whether petitioner is

entitled to claim a dependency exemption for each of his three

children for 2001, and (2) whether petitioner can claim a child

tax credit for each of his three children for 2001.
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FINDINGS OF FACT

Some of the facts have been stipulated and are so found. 

The stipulation of facts and the attached exhibits are

incorporated herein by this reference. Unless otherwise

indicated, all 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. At the time he

filed the petition, petitioner resided in Fort Worth, Texas.

On March 8, 1995, petitioner divorced Audra Ann Powers

(Audra). They had three children during their marriage: Amber

Powers, born on September 8, 1987; Wesley Powers, born on October

2, 1989; and Blane Powers, born on March 21, 1994 (collectively,

the children). The District Court of Bexar County, Texas, 37th

Judicial District, issued an “Agreed Final Decree of Divorce” and

named Audra as sole managing conservator of the children, and

petitioner was named possessory conservator of the children. In

addition, the divorce decree ordered that Audra had sole right to

establish the legal residence of the children. During 2001, the

children resided with Audra for 9 months and with petitioner for

3 months. Audra was the custodial parent of the children, and

petitioner was the noncustodial parent of the children. 

The divorce decree ordered petitioner to pay child support

in the amount of $780 per month to Audra. Petitioner also had to

provide health insurance for the children. In 2001, petitioner
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paid health insurance premiums in the amount of $1,043.64 and

dental insurance in the amount of $179.92. Additionally,

petitioner and Audra split the medical expenses for the children.

For 2001, petitioner claimed dependency exemptions and a

child tax credit for the children on his Federal income tax. 

Audra did not sign a release, a waiver, or any other document

providing that petitioner could claim the exemptions for the

children. 

OPINION

Generally, a taxpayer may claim a son or daughter as a

dependent if that child meets the statutory definition of

dependent. Sec. 151(c)(1), (3). The term “dependent” is defined

as an individual who receives over half of his support from a

taxpayer. Sec. 152(a). 

Section 152(e) provides the support test for a child of

divorced parents. Under that provision, 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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such child shall be treated, for purposes of subsection (a),

as receiving over half of his support during the calendar

year from the parent having custody for a greater portion of

the calendar year (hereinafter in this subsection referred

to as the “custodial parent”). [Sec. 152(e)(1).]

Section 152(e), however, also provides that the

“noncustodial parent” is treated as providing over half of a

child’s support if: (1) The custodial parent signs a written

declaration that such custodial parent will not claim such child

as a dependent, and the noncustodial parent attaches such written

declaration to the noncustodial parent’s return for the taxable

year; (2) there is a multiple support agreement between the

parties as provided in section 152; or (3) there is a qualified

pre-1985 instrument. Sec. 152(e)(2), (3), and (4); Paulson v.

Commissioner, T.C. Memo. 1996-560. Section 152(e)(3) and (4) do

not apply in this case.

A noncustodial parent may claim the exemption for a child

“only if the noncustodial parent attaches to his/her income tax

return for the year of the exemption a written declaration from

the custodial parent stating that he/she will not claim the child

as a dependent for the taxable year beginning in such calendar

year.” Sec. 1.152-4T(a), Q&A-3, Temporary Income Tax Regs., 49

Fed. Reg. 34459 (Aug. 31, 1984); see Miller v. Commissioner, 114

T.C. 184, 188-189 (2000), affd. on another ground sub nom.

Lovejoy v. Commissioner, 293 F.3d 1208 (10th Cir. 2002). The

declaration required pursuant to section 152(e)(2) must be made
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either on a completed Form 8332, Release of Claim to Exemption

for Child of Divorced or Separated Parents, or on a statement

conforming to the substance of Form 8332. Miller v.

Commissioner, supra at 189. Form 8332 requires the custodial

parent to furnish:

(1) the names of the children for which exemption claims

were released, (2) the years for which the claims were

released, (3) the signature of the custodial parent

confirming his or her consent, (4) the Social Security

number of the custodial parent, (5) the date of the

custodial parent’s signature, and (6) the name and the

Social Security number of the parent claiming the exemption. 

[Id. at 190.]

In this case, petitioner claimed the dependency exemptions

for the children for the year 2001. Petitioner testified that he

provided more than 50 percent of the support of the children and

that he should be able to claim dependency exemptions for them

for the taxable year 2001. During trial, petitioner also cited

to the Agreed Final Decree of Divorce which states in part:

IT IS FURTHER ORDERED AND DECREED that each party shall

be solely entitled to use as a credit against his or her own

tax liability all prepayments and withholdings made by him

or her after the date of divorce and all deductions,

exemptions, and adjustments attributable to his or her

income and expenses after the date of divorce. 

Petitioner stated: “I feel that * * * [the divorce decree] reads

whoever is providing the most to the children is able to claim

them as an exemption.” 

Audra was the custodial parent for 2001. She had custody of

the three children for 9 months of the year, which is over half
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the year. In addition, Audra did not sign a Form 8332 that she

would not claim the children as dependents for the year at issue

nor a statement conforming to the substance of Form 8332. 

Likewise, petitioner did not attach a Form 8332 or similar

written statement to his return for 2001. Accordingly,

petitioner is not entitled to the dependency exemptions for 2001.

Section 24(a) provides that a taxpayer may claim a credit

for “each qualifying child”. A qualifying child is defined,

inter alia, as any individual if “the taxpayer is allowed a

deduction under section 151 with respect to such individual for

the taxable year.” Sec. 24(c)(1)(A). For the reasons stated

above, petitioner may not claim a dependency exemption deduction

for any of the children under section 151. Accordingly, he is

not entitled to claim a child tax credit with respect to the

children for 2001. 

To reflect the foregoing,

Decision will be entered

for respondent.