T.C. M em o . 2 0 2 0 -8 5

UNITED STATES TAX COURT

CONSTANT B. BIDZIM OU, Pet i t i o n er v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo s . 1 6 2 5 0 -1 7 , 1 0 10 4 -1 8
. Fi l edJ u n e 1 5 , 2 0 2 0
.

Co n st an tB. Bi d zi m o u , p ro s e. J o s ep h P. Ben o i s t , fo r res p o n d en t .

M EM ORANDUM FINDINGS OF FACT AND OPINION PARIS, J u d g e: Ina n o t ice o f d efi ci en cy d at edM ay

8 , 2 0 1 7 , res p o n d en t d et erm i n eda d efi ci en cy

i n Fed eral i n co m e t ax o f $ 5,7 1 4 an d an accu racy -rel at ed p en al ty u n d er s ect i o n 6 6 6 2 (a) o f $ 1 ,1 4 2
. 8 0 fo r p et i t i o n er’ s t ax y ear 2 0 1 5
. 1 In a

1 Un l es s o t h erwi s e i nd i cat ed , al l s ect i o n referen ces are t o th e In t ern al (co n ti n u ed ...)- 2
-

[* 2 ] n o t i ce o f d efi ci en cy

d at edFeb ru ary

2 0, 2 0 1 8 , res po n den td et erm i n eda d efi ci en cy

i n Fed eral i n co m e t ax o f $ 4 ,6 7 3 fo r p et it i o n er’ s t ax y ear 2 0 1 6
. Aft er co n ces si o ns , 2 t h e i s s u es fo r d eci si o n are wh et h er p et i t i o n er i s en t i t l ed t o : (1 ) d ep en d en cy

ex em p t i on d edu ct i o n s u n d er s ect i o n 1 5 1(a) an d(c) wi t h
res p ectt o h i s m in o r ch i ld , BB, 3 fo r 2 0 1 5 an d 2 0 1 6 ; (2 ) h eado f h o us eh o l dfi l i n g
s t atu s u n d er s ect i o n s 1 (b ) an d2 (b ) fo r 2 0 1 5 an d2 0 1 6 ; (3 ) a ch i l d t ax cred i to r an ad d it i o n al ch i l d t ax cred i tu n d er s ect i o n 2 4(a) an d(d ), res p ect i v el y , fo r 2 0 1 5 an d 2 0 1 6 ; an d(4 ) earn ed i n co m e t ax cred i t s u n d er s ect i o n 3 2(a) fo r 2 0 1 5 an d2 0 1 6 ;
an d (5 ) wh et h er p et i t i on er p ai dqu al i fy i n g tui t i o n an d rel at edex p en s es o v er an d ab o ve a Fed eral Pel l g ran taward , an di f s o , i n wh aty ear h e p ai dth o s e ex p en s es . FINDINGS OF FACT So m e o f t h e fact s h av e b een s ti p u lat ed an dare s o fo u n d. Th e s t ip u l at i o n o f fact s, th e fi rs ts up p l em en t al s t i p u l at i o n o f fact s , th e s eco n ds up pl em en t al
s t ip u l at i o n o f fact s , th e th i rds up p l em en t al s t i p u l at i o n o f fact s an d t h ei r res p ect i v e

1 (...co n t in u ed ) Rev enu e Co de (Co d e) i n effect fo r t h e y ears i n i s su e, an d al l Ru l e referen ces are t o th e Tax Co u rt Ru l es o f Pract ice an dPro cedu re.

2 Res p o n d en tco n ced edthe accu racy -rel at edp en al t y u n d er s ec. 6 6 6 2 (a) fo r 2 0 1 5
. 3 Tax Co urt Ru l es req ui re a m i n o r ch i l d t o b e i d en t i fi edb y h i s o r h er i n i t i al s . See Ru l e 2 7 (a)(3 ).- 3
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[* 3 ] ex h ib i t s are i nco rp o rat edh erei n b y t h i s referen ce. 4 Pet i t io n er res i d edi n Kan sas wh en h e t i m el y

fi ledth e p et it i o n s i n th es e cas es . BB, Pet i t i o n er’ s M in o r Ch i ld Du ri n g th e y ears i n i ss u e p et i t i o n er h ado n e m i n or ch i l d , BB, fro m h i s fo rm er m arri ag e t o Am

b er Bi d zi m o u . BB was b o rn i n 2 0 04 . Pet i ti o n er an dM s . Bi d zi m o u ’ s d i v o rce was fi nal i zed o n Au g u st1 5 , 2 0 1 3 . Al s o o n Au g u s t 1 5 , 2 0 13 , th e 1 8 th J u d i ci al Di s tri ct , Di s t ri ctCo u rto f Sed g wi ckCo un t y , Kan s as Fam i l y Law Dep art m en t(Di s t ri ctCo u rtFLD) fi l edp et i t i o n er an dM s . Bi d zi m o u ’ s “ Perm an en t Paren t i n g Pl ano f t h e Part i es ” (p aren t i n g p l an ). Th e p aren t i n g p lan g av e M s . Bi d zi m o us o l e l eg al cu s t o dy o f BB, m ak i n g h er t h e cu s t o d ial p aren to f BB. 5 It al s o es t ab l i s h edp eri o d s i n whi ch BB wo u l d h av e “ p aren ti n g t i m e” wi t h p et i t i o n er. Th e p aren t i n g p lan s ch edu l edp et i t i o n er’ s “p aren ti n g t i m e” fo r M o n d ay th ro u g h Fri d ay fro m 4 p .m . t o 8 : 4 5 p .m . an d Su nd ay fro m 9 : 4 5 a.m . t o 6 p .m . Th e p aren t i n g p l an al t ern at edcert ai n h o l i d ay s b et ween “ ev en ” y ears an d “ o d d ” y ears .

4 Th es e cas es were co n s o l i d at edo n M arch 1 4 , 2 0 1 9 , fo r tri al , b ri efi n g , an d o p i n i o n . Befo re th e cas es were co n s ol i dat ed , th e p art i es fi l eda fi rs t s t i pu l at i o n o f fact s an da fi rs ts up p l em en t al s t i p u l at i o n o f fact s i n th e cas e ateach d o ck et , No
. 1 6 2 5 0 -1 7 an dNo . 1 01 04 -1 8 . Aft er t h e cas es were co n s o l i dat ed , th e p art i es fi l ed each rem ai ni ng s up p lem en ti n b o t h
.

5 Fo r eas e o f referen ce, t h e Co u rtwi ll refer t o M s . Bi d zi m o u as BB’ s m o t h er o r t h e cu s t od ial p aren t .- 4
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[* 4 ] Pet i t i o n er was g ran t ed ev ery Fat h er’ s Day

an dh i s b i rt h d ay . Pet i ti o ner an d BB’ s m o th er wo u l dal t ern at e BB’ s b i rt h d ay . OnM arch 2 0 , 2 0 1 4 , th e Di s t ri ctCo u rtFLD fi l eda “ J o u rn al En t ry o f Sup p o rt ” o rd eri n g p et i t i o ner t o p ay ch i l ds up p o rtan dm ai nt ai n h eal t h i n s u ran ce fo r BB. Pet it i o n er ap p eal edth e ch i l d s up p o rto rd er o n M arch 2 1 , 2 0 14 , b utd i d
n o tap peal th e p aren t in g p l an award in g BB’ s m o t h er s o l e l eg al cu s t o dy o f BB. Th e Co u rto f Ap p eal s o f Kan s as rem an d edth e cas e t o th e Di s t ri ctCo u rtFLD. Th en aft er an o t h er h eari n g , th e Di s tri ctCo u rt FLD fi ledan o t her “ J o u rn al En t ry o f Sup p o rt ” o n J u l y

2 1, 2 0 14 , o rd eri n g p et it i on er t o p ay an i n creas edam o u n to f ch i l d
s up p ortan dco n t i n ue t o m ai n t ai n h eal t h i n s u ran ce fo r BB, an dg av e p et i ti o n er t h e

“ ri g h tt o cl ai m

the ch i l do n al l i n co m e t ax fi l i n g s ” b ecau s e h e was p ro v i d i n g h eal th
care co v erag e fo r BB. Th e Di st ri ctCo urtFLD o rd eredth atch il ds upp o rt b e wi th h el dfro m

p et it i o n er’ s p ay ch eck . Th e J u ly 2 1 , 2 0 1 4 , “ J ou rn al En t ry o f Sup p o rt ” was th en s ub m i t t edal o n g wi t h t h e reco rdfo r th e Co u rto f Ap p eal s o f Kan sas t o rev i ew. OnM ay 8 , 2 0 1 5 , th e Co u rto f Ap p eal s o f Kan s as fi l eda M em o ran du m Op i ni o n up h o l d i n g t h e Di s tri ctCo u rtFLD’ s ch i lds up p o rtan di nco m e wi t h h o l d i n g
o rd er. See St at e ex rel . Sec’ y , Dep t . fo r Ch il dren & Fam i l i es v . Bi dzi m o u , 3 4 7 P.3 d1 2 1 4 (t ab l e) (Kan . Ct . Ap p . 2 0 15 ), 2 01 5 W L 2 34 2 8 7 5 . In J ul y 2 0 14 th e- 5
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[* 5 ] Co u rto f Ap p eal s o f Kan s as fo u n dth e fo l l o wi n g fact s : (1 ) BB p ri m ari l y
res i dedwi t h h i s m o t h er, (2 ) p et i t i o n er h ad p aren t in g t i m e wi t h BB fro m ap p ro x i m at el y Fri d ay

at4 p .m . t o Su n d ay

ev en i n g , an d(3 ) p et it i on er h adth e ri g h t t o cl ai m BB as a d ep en d en tfo r t ax p u rp o s es . Pet i t i o n er t h enp et i t i o n edth e Sup rem e Co u rto f Kan s as fo r rev i ew o f t h e Co u rto f Ap peal s o f Kan s as ’ M em oran du m

Op in i o n o n J u l y

2 4 , 2 0 1 5. Rev i ew was s ubs equ en t l y d en i edo n Decem b er 2 2 , 2 0 16
. Pet i t i o ner d i dn o tp ro v i d e t h i s Co u rtwi t h an y d o cu m en t at i o n i n ei t h er a l o g , a cal en d ar, o r a jo u rn al t o s h o w th atth e am o u nto f t i m e BB was i n h is cu s t o dy was
m o re th an th e am ou n to f t i m e p res en t ed t o th e Co urto f Ap p eal s o f Kan s as i n 2 0 1 4
o r l ai d o u t i n th e p aren t i n g p l an . Pet i t io n er’ s Edu cat i o n In 2 0 1 5 an d2 0 1 6 p et i t i o n er at t en d edBu t l er Co u n t y Co m m un i t y Co l l eg e (BCCC) at l eas th al f t i m e an dh adco rres p o n di ng ch arg es fo r tu i ti o n an d rel at ed
ex p en s es fo r t h e fal l 2 0 1 5 , s p ri n g 2 0 1 6 , an dfal l 2 0 1 6 s em es t ers . Pet i t i o ner’ s 2 0 1 5 s tu d en tacco u n t s t at em en t was d et ai l edan drefl ect ed ch arg es fo r tu i t i o n , fees , an db oo k s , an d p aym en t s fo r th o s e ch arg es . Fo r t h e fal l 2 0 1 5 s em es t er, p et i t i o ner was award edfi n an ci al ai di n t h e fo rm o f a Fed eral Pel l- 6
-

[* 6 ] g ran tan dtwo Fed eral d i rect s tu d en tl o an s . 6 Pet i t i o ner’ s s p ri ng 2 0 1 5 s em es t er fi nan ci al ai dp ro ceed s were d i sb u rs edd i rect l y t o BCCC o n Sep t em

b er 2 2 , 2 0 1 5
. Pet i t io n er’ s qu al i fi ed tu i t io n an drel at edex p en s es were co l l ect edb y BCCC fro m th o s e p ro ceed s . Th e Fed eral Pel l g ran t p ro ceed s fu l l y p ai dp et it i on er’ s fal l 2 0 1 5
s em es t er tu i t i o n an drel at edex p en s es , an d p et i t i o n er recei v eda refu n d o f fi n an ci al ai dp ro ceed s i n ex ces s o f tu i t i o n an drel at edex p en s es o n Sep t em b er 2 2 , 2 01 5
. Pet i t i o ner’ s 2 0 1 6 s tu d en tacco u n t s t at em en t was al s o d et ai l edan d refl ect ed ch arg es fo r tu i t i o n , fees , an db oo k s , an d p aym en t s fo r th o s e ch arg es . Fo r t h e
s p ri n g 2 0 1 6 s em es t er, p et i t i o ner was award edfi n an ci al ai di n t h e fo rm o f a Fed eral Pel l g ran tan dtw o Fed eral d irect s tu d en tl o an s . Pet i t i o ner’ s s p ri n g 2 0 1 6 fi n an ci al ai dp ro ceed s were d i s b u rs edd i rect l y t o BCCC o n Feb ru ary

2 3 , 2 01 6 . Pet i t i o n er’ s qu al i fi edtu i t i o n an drel at edex p en s es were co l l ect edb y BCCC fro m

th e fi n an ci al

6 Fed eral Pel l g ran t s an dFed eral d i rect s tu d en t l o an s are p ro g ram s o f t h e U.S. Dep art m en to f Edu cat i o n . Th e U.S. Dep art m en to f Edu cat i o n req u i res p o t en t i al s tu d en t s t o ap pl y fo r Fed eral Pel l g ran t s an d d i rect s tu den tl o an s b y co m p l et i n g th e Free Ap p l i cat i o n fo r Fed eral Stu den tAi d (FAFSA). Th e FAFSA req u i res th e ap p li can tt o p ro v i d e fi n an ci al i n fo rm at i on t o d et erm i n e h i s el i gi b i l i t y an d s peci fi cal l y

Fed eral t ax i n fo rm at i o n fro m h i s cu rren tt ax retu rn . See h t tp s : // s tu d en t ai d
. g o v / ap p l y -fo r-ai d/ fafs a/ fi l l i n g -o u t # do cu m en t s (l as tv i s i t edJ u n e 9 , 2 02 0 ). Fed eral Pel l g ran t s “ u s u al l y are award edo n l y t o u n d erg radu at e s tu d en t s wh o d i s p l ay

ex cep t i o n al fi n an ci al n eed ”. See h t tp s: //s tud en t ai d .g o v /u n d ers t an d -ai d/ ty p es / gran t s /p el l (l as tv i s i tedJ u n e 9 , 2 0 2 0 ). “ A Fed eral Pel l Gran t , u n l i k e a l o an , d oes n ot h av e t o b e rep ai d”. Id . Th e Co u rtm ak es n o fi n d in g o n t h e accu racyo f th e fi n an ci al o r Fed eral t ax i nfo rm at i on p et i ti o ner p ro v i d edt o th e U.S. Dep art m en to f Edu cat i o n .- 7
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[* 7 ] ai dp ro ceed s . Th e Fed eral Pel l g ran tp ro ceed s d i dn otfu l l y p ay p et i t io n er’ s
s p ri n g 2 0 1 6 s em es t er tu it i o n an drel at edex p en s es . Pet i t io n er’ s d i rect s tu d en tl o an p ro ceed s p ai dth e b al an ce, an dp et i t i o n er recei veda refu n d o f fi nan ci al ai d p ro ceed s i n ex ces s o f tu i t io n an drel at edex p en s es o n Feb ru ary 2 3 , 2 0 1 6
. Fo r t h e fal l 2 0 16 s em es t er, p et i t io n er was award edfi n an ci al ai d i n th e fo rm
o f a Fed eral Pel l g ran tan dtwo Fed eral d i rect s tu d en tl o an s . Pet i ti o n er’ s qu al i fi ed tu i t i o n an drel at edex p en s es were co l l ect edb y BCCC fro m

th e fi n an ci al ai d p ro ceed s. Th e Fed eral Pel l g ran tp ro ceed s fu l l y p ai d p et i t i o n er’ s fal l 2 0 1 6
s em es t er tu i t i o n an drel at edex p en s es , an d p et i t i o n er recei v eda refu n d o f fi n an ci al ai dp ro ceed s i n ex ces s o f tu i t i o n an drel at edfees o n Sep tem ber 2 7, 2 0 16
. Pet i t i o ner recei veda 2 0 1 5 Fo rm 1 0 9 8 -T, Tu i t i o n St at em en t , refl ect i ng $ 1 ,8 0 2 b i l l edfo r “ qu al i fi edtu it i o n an drel at edex p en s es ” an d $ 1 ,4 4 4 o f
s ch o lars h i p o r g ran t s . Th e am o u n t s b i l ledco rres p o n d t o th e tu it i o n an drel at ed fees fo r t h e fal l 2 01 5 s em es t er an dth e s p ri n g 2 0 1 6 s em es ter. Th e s ch o lars h i p o r g ran t s co rres p o n d t o th e Fed eral Pel l g ran taward edfo r o nl y the fal l 2 0 1 5
s em es t er. Pet i t i o ner recei veda 2 0 1 6 Fo rm 1 0 9 8 -T refl ect i n g $ 9 28 b i ll ed fo r “ qu al i fi ed tu i t i o n an drel at edex p en s es ” an d$ 3 ,6 2 5 o f s ch ol ars h i p o r g ran t s. Th e am o u n t s b i l l edco rres p o n d t o th e tui ti o n an drel at edfees fo r t h e fal l 2 0 1 6 s em es t er. Th e- 8
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[* 8 ] s ch o l ars h i p o r g ran t s am o u n tco rres p o n d s t o th e Fed eral Pel l g ran t s award ed fo r t h e s p ri n g 2 0 1 6 s em es t er an dth e fal l 2 0 1 6 s em es t er. Tax Retu rn s an dNo t i ces o f Defi ci en cy Pet i t i o ner, a cas h b as i s t ax p ay er, t i m el y fi l edh is Fed eral i n co m e t ax retu rn fo r 2 0 1 5 , rep o rt i n g ad

j u s t edg ro s s i n co m e o f $ 2 5,9 1 8 an d cl ai m i n g a d ep en d en cy
ex em p t i o n d edu ct i o n wi t h res p ectt o BB, h eado f h o u s eh o l dfi li n g s t atu s, an ad d it i o n al ch i l d t ax cred i t , an earn ed i n co m e t ax cred i t, th e Am eri can o p p o rtu n i t y cred i to f $ 7 2 1, an dn on refu nd ab l e edu cat i on cred i t s o f $ 8 6 8 . Pet i t i on er d idn o t at t ach t o h is 2 01 5 retu rn , o r o t herwi s e s ub m it , a Fo rm 8 33 2 , Rel eas e/ Rev o cat i o n
o f Rel eas e o f Cl ai m

t o Ex em p t i o n fo r Ch i l d b y

Cu s t o d i al Paren t , o r eq ui v al en t d ecl arat io n s i g nedb y

th e cu s t o d i al p aren t . BB’ s m o t h er, d es p it e t h e Di s t ri ctCo u rt FLD award i n g p et i t i o n er t h e ri g h t t o cl ai m BB, al s o cl ai m eda d ep en d en cy
ex em p t i o n d edu ct i o n wi t h res p ectt o BB o n h er Fed eral i nco m e t ax retu rn fo r 2 0 1 5
. Res p o n d en ti s su edt o p et i t i o n er a n o t i ce o f d efi ci en cy d at edM ay

8 , 2 0 1 7 , d i s al lo wi n g h i s d ep en den cy ex em p t io n d edu ct i o n , h eado f h o u s eh o l dfi l i n g s t atu s , ad d it i o n al ch i l d t ax cred i t , earn edi n co m e t ax cred it , Am eri can o p p o rtu n i t y cred i t , an d n o n refu nd ab l e edu cat io n cred i t s . Pet i ti o n er t i m el y p et it i on ed t h i s Co u rtfo r red et erm i n at i o n i n th e cas e atd o ck etNo . 1 6 2 5 0-1 7
.- 9
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[* 9 ] Pet i t i o ner t i m el y

fi l edh i s Fed eral i n co m e t ax retu rn fo r 2 0 1 6, rep o rt i n g ad ju s t edg ro ss i nco m e o f $ 2 1 ,2 2 7 an dcl ai m i ng a d ep en d en cy ex em p ti o n d educt i o n wi t h res p ect t o BB, h eado f h o u s eh o l dfi l i n g s t atu s , a ch i l dt ax cred i t , an ad d it i o n al ch i l d t ax cred i t , an dan earn edi nco m e t ax cred i t . Pet i ti o ner d i dn o t at t ach t o h is 2 01 6 retu rn , o r o t herwi s e s ub m it , a Fo rm 8 33 2 s i g n edb y

th e cu s t o d i al p aren t . BB’ s m ot h er, d es pi t e t h e Di s t ri ct Co u rtFLD award i n g p et i t io n er th e ri g h t t o cl ai m BB, al s o cl ai m eda d ep en d en cy ex em pt io n d edu ct i o n wi t h res p ectt o BB
o n h er Fed eral i n co m e t ax retu rn fo r 2 0 1 6
. Res p o n d en ti s su edt o p et i t i o n er a n o t i ce o f d efi ci en cy d at edFeb ru ary

2 0 , 2 0 1 8 , d i s al l o wi n g h i s d ep en d en cy ex em pt i o n d edu ct io n , h eado f h o u seh o l d fi l i n g
s t atu s, ch i l dt ax cred i t , ad d i t io nal ch i l dt ax cred i t , an d earn edi nco m e t ax cred i t . Pet i t io n er t i m el y

p et it i o n edth i s Co u rtfo r red et erm in at i o n i n the cas e atd o ck et No . 1 0 1 0 4 -1 8
. Th e cas es atd o ck etNo s . 1 6 2 5 0 -1 7 an d 1 0 1 0 4 -1 8 were co n s o l id at edfo r tri al , b ri efi ng , an d o p i n i on o n M arch 1 4 , 2 0 1 9
. OPINION I. Bu rd en o f Pro o f Gen eral ly , th e Co m

m i s s i o n er’ s d et erm i n at i o n s i n a n o t i ce o f d efi ci en cy are p res u m edco rrect , an dth e t ax p ay er b ears th e b urd en o f p ro v i n g erro r i n th e- 1 0 -

[* 1 0 ] d et erm in at i o ns . See Ru l e 1 4 2 (a); W el ch v . Hel v eri n g , 2 9 0 U.S. 1 11 , 1 1 5 (1 9 3 3). Dedu ct i o n s an dcred i t s are a m at t er o f l eg i sl at iv e g race, an d t h e t ax p ay er b ears th e b urd en o f p ro vi ng en ti t l em en tt o an y d edu ct io n o r cred i tcl ai m edo n a retu rn . INDOPCO, In c. v . Co m m i s s i o n er, 5 0 3 U.S. 7 9, 8 4 (1 9 9 2 ); New Co l o n i al Ice Co . v . Hel v eri n g , 2 9 2 U.S. 4 3 5 , 4 4 0 (1 93 4 ). Un d er cert ai n ci rcu m s t an ces th e b u rd en o f p ro of as t o fact u al m at t ers s h i ft s t o the Co m

m i s s io ner p u rs uan tt o s ect i o n 7 4 9 1 (a). Pet i t io n er d i dn o targ u e t h e ap p li cab i l i t y

o f s ect i o n 7 4 9 1 (a), an dth e reco rdd em o ns t rat es thatth e b u rd en o f p ro o f d o es n o ts h iftt o res p o n d en twi t h res p ectt o an y o f t h e i ss u es i n th es e cas es . Acco rd in g ly , p et i ti o n er b ears th e b u rd en o f p ro o f fo r al l i ss ues i n d i sp u te. II. Dep en d en cy

Ex em p t i o n Dedu ct i on Sect io n 1 5 1 (a) an d(c) al l o ws t ax p ay ers an an n u al ex em p t i o n d educt i o n fo r each “ d ep en d en t ” as d efi n ed i n s ect i o n 1 5 2 . A d ep en d en ti s ei t her a q u al i fy i n g ch i l do r a qu al ify i n g rel at iv e. Sec. 1 5 2 (a). Th e req u i rem en ti s d i s junct i v e; an i n d i v i du al s at i s fy in g ei t h er t h e qu al ify i ng ch i l d req u i rem en to r t h e qu al ify i n g rel at i v e req u i rem en t m ay b e cl ai m edas a d ep en d en t. See Sk i t zk i v . Co m m i s s i o n er, T.C. M em o . 2 0 1 9 -1 0 6 , at* 5 ; Ko n radv . Co m m is s io n er, T.C. M em o. 2 0 1 0 -1 7 9
.- 1 1 -

[* 1 1 ] A. Qu al ify in g Ch i l d A qu al i fy i n g ch i l d m

u s tm eetfi v e req u i rem en t s fo r t he t ax p ay er t o qu al i fy fo r t h e d educt i o n . Sec. 1 52 (c). To b e a t ax p ay er’ s qual i fy i n g ch i l d u n d er s ect i o n 1 5 2 (c)(1 ), an i n di vi du al m u s t: (A) b ear a s peci fi edrel at i o n s h i p t o th e t ax p ay er; (B) h av e t h e s am e p ri n ci p al p l ace o f ab o d e as th e t ax p ay er fo r m o re t h an o n e-h al f
o f t h e t ax ab l e y ear; (C) m eetcert ai n ag e req u i rem en t s ; (D) h av e n o t p ro v i d edo v er
o n e-h al f o f h i s o r h er o wns up p o rt fo r t h e y ear; an d (E) n o th av e fi l eda jo i n tretu rn wi th h is o r h er s p o u s e fo r t h e t ax ab le y ear. Th e p ert i n en tfact o r h ere i s th e
res i den ce req u i rem en t : Th e i n di v i du al m us th av e t h e s am e p ri n ci p al p l ace o f ab o de as th e t ax p ay er fo r m o re t h an o n e-h al f o f t he t ax ab l e y ear. Sec. 1 5 2 (c)(1 )(B). Ou r cas el aw h as co u n t eda ch il d ’ s n i g ht s s p en twi th a p aren ti n d et erm i n i n g wh eth er t h e ch i l d h as th e s am e p ri n ci p al p l ace o f ab o d e as th atp aren t fo r m o re t h an o n e-h al f o f t h e t ax ab l e y ear. 7 See Sk i t zk i v . Co m m i ss i o ner, at * 9 ; St ap l et o n v . Co m

m i s s i o n er, T.C. M em o . 2 0 1 5-1 7 1 , at* 5 -* 6
.

7 Pro p o s edreg ul at i o n s wo u l dp ro v i d e t h atth e d et erm i n at i o n o f wh et h er a ch i l dh as the s am e p ri n ci p al p l ace o f ab o de as the t ax p ay er fo r t h e p u rp o s e o f s ec. 1 5 2 (c)(1 )(B) i s b as edup o n the n u m ber o f n i g h t s du ri n g t h e y ear t h atth e ch i l d s t ay s o v ern i g h t atth e t ax p ay er’ s dw el l i n g o r, i f el sewh ere, i n t h e co m p an y o f t h e t ax p ay er. See s ec. 1 .1 5 2-4 (c)(1 ), (3 ), Pro po s edIn co m e Tax Reg s ., 8 2 Fed . Reg
. 6 3 8 6 (J an . 1 9, 2 0 1 7 ).- 1 2 -

[* 1 2 ] Th e p art i es h av e n o ts t i p u l at edan dp et it i o n er d i dn ott es t i fy o r p ro v i d e an y d o cu m en t at i o n i n t h e fo rm o f a l o g , cal en d ar, o r jo u rn al as t o wh enBB s p en t
n i g h t s atp et i t i o ner’ s res i d en ce i n 2 0 1 5 an d2 0 1 6 . Th e o n l y ev i d en ce i n t h e reco rd i s the Di s t ri ctCo u rtFLD p aren t i n g p lan en t eredi n 2 0 1 3 th atwas d et erm i n edb y th e Co u rto f Ap p eal s o f Kan s as i n 2 0 1 4 n o tt o b e th e act u al arran g em en to f p et i t i o n er an dBB’ s m o t h er. Wh en d i rect l y as k ed b y th e Co urth o w m an y

n i g h t s BB s t ay ed ath i s ap art m en t , p et i t i o n er wo u ldn o t g i v e a s p eci fi c nu m b er o f n i g h t s . In s t ead , h e t es ti fi edth ath e g av e BB “ freed o m ” t o d eci de wh ere BB wan t eds t ay b u tth atBB’ s res i d en ce was p et i t i o n er’ s ap art m en t . Th e Co u rtfi nd s h i s cl ai m s t o b e s el f-s erv i ng an dn ots up p ort edb y th e d o cu m en t at io n i n th e reco rd . See To k ars ki v . Co m

m i s s i o n er, 8 7 T.C. 7 4 , 7 7 (1 9 86 ) (fi n d i n g th atth e Co urti s n o t req u i redt o accep t u n co rro b o rat edo r s el f-s erv i n g t es t i m on y as rel i ab l e an dtru e). Wh i l e t h e reco rdrefl ect s th atp et i t i o n er fi n an ci al l y s up p o rt edBB, fi n an ci al
s up p ortd o es n o t m ean th atBB s at i s fi edth e res i d en ce req u i rem en t o f s ect i o n 1 5 2 (c)(1 )(B). Wh i l e t h e reco rdrefl ect s p et i t i o n er’ s fi nan ci al s upp o rt fo r BB, p et it i o n er h as fai l edt o es t ab l i s h th ath e h adcu s t o dy o f BB fo r m o re t h an o n e-h al f o f BB’ s n i gh t s i n 2 0 1 5 o r 2 0 1 6. Ad d i t i o nal l y , p et i t i o n er h as n ots h o wnth atth e arran g em en t fo u n d b y t h e Co u rto f Ap peal s o f Kan s as ch an gedi n 2 01 5 o r 2 0 1 6 . Th erefo re, t h e- 1 3 -

[* 1 3 ] Co u rtfi n d s th atBB s pen tm ore t han o n e-h al f o f h i s n i g h t s i n 2 0 1 5 an d2 0 1 6 wi th h is m o t h er. As a co n s equen ce, BB d idn o t h av e t h e s am e p ri n ci p al p lace o f ab o de as p et i t i o ner fo r m o re t h an o ne-h al f o f 2 01 5 o r 2 0 1 6 , an d t h erefo re, BB i s
n o tp et i t i o n er’ s qu al i fy i n g ch i l dfo r ei t her y ear. See s ec. 1 5 2 (c)(1 )(B). B. Qu al ify in g Rel at i v e Ani n d i v idual wh o i s a m em b er o f t h e t ax p ay er’ s fam il y m ay b e a qu al i fy in g rel at i v e i f, fo r t h e y ears ati s s ue, t h e t ax p ay er p ro v id edo v er o n e-h al f o f th e i n d i v i du al ’ s s up p o rt , th e i n di v i du al ’ s g ro s s i n co m e was l es s th an th e s ect i o n 1 5 1 (d ) ex em

p t i o n am o u nt , an dth e i nd i v idu al was n o t t he q u al i fy i n g ch il do f t h e t ax p ay er o r o f an y

o t h er t ax p ay er. See s ec. 1 5 2 (d )(1 ); Rev . Pro c. 2 01 3 -3 5 , s ec. 3 .2 3(1 ), 2 0 1 3-4 7 I.R.B. 5 3 7, 5 42 . As d i s cu ss edab o ve, BB was n otth e qu al i fy i n g ch i l do f p et i t i o n er. Ho wev er, BB was th e qu al i fy i n g ch i l do f h i s m o t h er, t he
cu s t o d i al p aren t , b ecau s e BB s at i s fi edeach req u i rem en to f s ect io n 1 52 (c)(1 ) i n 2 0 1 5 an d2 0 1 6 . BB was h er ch i l d , h adn otat t ai nedth e ag e o f 1 9 i n 2 0 1 5 o r 2 0 1 6 , d i dn o t p ro v i d e o v er o ne-h al f o f h i s o wn s up p o rti n 2 0 15 o r 2 0 1 6, d i dn o tfi l e a jo i n t retu rn fo r 2 0 1 5 o r 2 0 1 6, an d --cri t i cal t o th es e cas es --h adth e s am e p ri n ci p al p l ace o f ab o d e as h i s m o t her fo r m o re t h an o n e-h al f o f b ot h 2 01 5 an d2 0 1 6
. Becau s e BB was a qu al i fy i n g ch i l do f h i s m o th er fo r b o t h 2 0 1 5 an d2 0 1 6 , BB was- 1 4 -

[* 1 4 ] n o ta qu al i fy in g rel at i v e o f p et i t i o n er fo r t h o se y ears . See Seel i g er v . Co m m i s s i o n er, T.C. M em o . 2 0 1 7 -1 7 5 , at* 5
. C. Sp eci al Ru l e fo r Di v orced Paren t s In th e cas e o f d i v orced o r s ep arat edp aren t s, s ect io n 1 5 2 (e) p ro v i d es a
s p eci al ru l e n o t wi t h s t an d in g s ub p arag rap h (B) o f s ub s ect i o n (c)(1 ) t o d et erm i n e wh i ch p aren t i s en t i t ledt o a d ep en d en cy ex em p t i o n d edu ct i o n fo r a ch i ld
. Gen eral l y , a ch i ldwh o i s i n the cu s to dy o f o ne o r b o th o f t h e ch i l d ’ s p aren t s fo r
m o re th an o ne-h al f o f t h e cal en d ar y ear an drecei v es m ore t han o n e-h al f o f h i s o r h er s up p o rtfro m

p aren t s wh o are d i vo rcedo r s ep arat edo r wh o l i v e ap artatal l t i m es du ri n g the l as ts i x m o n t h s o f t h e cal en d ar y ear wi l l b e co n s i d eredth e qu al i fy in g ch i l do f t h e cu s t o d i al p aren t. Sec. 1 5 2 (e)(1 ). Sect i o n 1 5 2 (e)(4 )(A) d efi n es th e cu s t od i al p aren tas “ t h e p aren th av in g cu s t o dy fo r t h e g reat er p o rt i o n o f th e cal en d ar y ear.” Sect i o n 1 5 2 (e)(4 )(B) d efi n es th e n o n cu st o d i al p aren t as “ t h e p aren twh o i s n o tth e cu st o di al p aren t .” Gi v en th atBB res i dedwi t h h i s m o t h er fo r t h e g reat er n u m b er o f n i g h t s du ri n g 2 0 1 5 an d2 0 1 6 an d t h ats h e was g ran t eds o le l eg al cu st od y o f BB, s h e i s th e
cu s t o d i al p aren tfo r t h o s e y ears an d p et i t i o n er i s t h e n o n cu s t o d i al p aren t . Pu rs uan tt o s ect i o n 1 5 2 (e), a ch i l dwi l l b e t reat edas a qu al i fy i n g ch i l do f t h e
n o n cu s t od i al p aren trat h er t h an o f t h e cu s t od i al p aren twh en th e fo l lo wi n g- 1 5 -

[* 1 5 ] req u i rem en t s are m et : (1 ) t h e cu s t od i al p aren ts i g ns a wri tt en d ecl arat i o n , i n th e m an ner an dfo rm

p res cri b edb y

reg u l at i on s , s t at in g th ats h e wi ll n o tcl ai m th e ch i l das a d ep en d en t fo r each y ear at i s s u e an d(2 ) t he n o n cu s t o di al p aren tat t ach es th e d ecl arat i on t o h i s retu rnfo r each y ear. Sec. 1 5 2 (e)(2 ). Th e wri t t en d ecl arat i on m u s tb e an “ u n co n d i t i o n al rel eas e” o f th e cu s t o d i al p aren t ’ s cl ai m

t o th e ch i ldas a d ep en d en t . Sec. 1 .1 5 2 -4 (e)(1 )(i ), In co m e Tax Reg s. Th e d ecl arat i o n req u i redu n d er s ect i o n 1 5 2 (e)(2 ) m u s t b e m ad e ei t h er o n a
co m p l et edFo rm

8 3 3 2 o r o n a s t at em en t co n fo rm i n g t o t h e s ub st an ce o f Fo rm 8 3 3 2 . M i l l er v . Co m

m i s s io n er, 1 1 4 T.C. 1 8 4 , 1 8 9 (2 0 0 0 ); s ec. 1
. 1 5 2 -4 (e)(1 )(i i ), In co m e Tax Reg s . “ Fo rm 8 3 3 2 p ro v i d es an effect i v e an du ni fo rm way fo r a
cu s t o d i al p aren tt o m ak e t h e d ecl arat i o n req ui redi n s ect io n 1 5 2 (e)(2 )(A) fo r t h e b en efi to f t h e n on cu s to d i al p aren t .” Arm s tro n g v . Co m m i s s io n er, 1 3 9 T.C. 4 6 8 , 4 7 2 (2 01 2 ), aff’ d, 7 4 5 F.3 d8 9 0 (8 t h Ci r. 2 0 1 4 ). A wri t t en d ecl arat io n n oto n a Fo rm 8 3 3 2 “ m u stco n fo rm

t o th e s ub s t an ce o f t hatfo rm an dm u s t b e a d ocu m en t
ex ecu t edfo r t h e s o l e p u rp o s e o f s erv in g as a wri t t en d ecl arat io n ”. Sec. 1
. 1 5 2
- 4 (e)(1 )(i i ), In co m e Tax Reg s . Co u rto rd ers , d ecrees , an ds ep arat i o n ag reem en t s
ex ecu t edi n a t ax ab l e y ear b eg i n n in g aft er J u l y 2 , 2 00 8 , d o n o tqu al i fy . Id
. s ub p aras . (1 )(i i ), (5 ).- 1 6 -

[* 1 6 ] Pet i t i o ner arg u es th ath e was th e cu s t o di al p aren tfo r b ot h 2 0 1 5 an d2 0 1 6
an d d i d n o tn eedt o o bt ai n a Fo rm 8 3 3 2 fo r ei t h er o f t he t ax y ears i n i s s ue. As th e Co u rth as al read y

d et erm i n ed , u n d er th e requ i rem en t s o f s ect i o n 1 5 2 (e), as a d i v o rcedp aren tp et it i o n er fai l s t o qu al i fy as th e cu s to d i al p aren to f BB fo r 2 0 1 5 o r 2 0 1 6 . As th e n o n cu s t o d ial p aren t , p et i ti o n er was req ui redu n d er t h e reg u l at i o n s t o
o b t ai n a s i gn edFo rm

8 3 3 2 , o r s i m i l ar wri t t en s t at em en t , fro m t he cu s t o d i al p aren t. He d i d n o t o bt ai n a Fo rm 8 3 3 2 , o r a s i m il ar wri t ten s t at em en t , fro m BB’ s m o t h er fo r ei th er 2 0 1 5 o r 2 0 1 6; i n d eed , s h e cl ai m edBB as a d ep en d en t o n h er 2 0 1 5 an d 2 0 1 6 t ax retu rn s . Fu rt her, t h e d efi n it i o n o f cu s t o d i al p aren tfo r d et erm i n at i o n o f a qu al i fy i n g ch i l do r rel at iv e fo r t h e p u rp o s e o f cl ai m i n g a ch i l das a d ep en d en t , cl ai m i n g h ead
o f h o us eh o l dfi l in g s t atus , cl ai m i n g a refu n d ab le ch il dt ax cred i t o r ad di t i o n al ch i l dt ax cred it , o r cl ai m i n g a refu n d ab le earn ed i n co m e t ax cred i ti s s ub jectt o
v ery s p eci fi c req u irem en t s . A fi n d i n g fro m a St at e co u rt m ay

b e ev i d en ce i n
ev al u at i ng th e fu l fi ll m en to f th o s e req u i rem en t s , b u tth e Co d e p ro v i d es th atSt at e
co u rto rd ers al o n e can n o tb e rel i edup o n aft er 1 9 8 4
. 8 See s ec. 1 5 2 (e)(2 ); Sk i t zk i v .

8 Befo re 1 9 8 4 a St at e co u rtd ecree o f d i v orce o r m ai n t en an ce o r s up p o rt co u ldco n fer en t i t l em en tt o t h e d ep en d en cy ex em p t i o n up on a n o n cu s to d i al p aren t i f h e o r s he s at i s fi edcert ai n s up p o rt t h res h o ld s fo r t h e ch i ldati s s u e. Th e cu s t o d i al p aren twas n o t req u i redt o s i g n a rel eas e. See s ec. 1 5 2 (e)(2 ) (1 9 8 2 ) (rep eal ed (co n ti n u ed ...)- 1 7 -

[* 1 7 ] Co m

m i s si o n er, at * 1 1 -* 1 2 . Th e 2 0 1 3 “ J o u rn al En t ry o f Sup po rt ” en t eredb y th e Di s tri ctCo u rtFLD, a St at e co u rt , d o es n o tb i n dth i s Co u rtfo r d et erm i n i n g wh et h er p et i ti o n er i s en ti t l edt o a d ep en d en cy ex em p ti o n d edu ct i o n fo r 2 0 1 5 o r 2 0 1 6 . Al t h o u g h th e Co urti s s y m p at h et i c t o th e fact t h atth e Di st ri ctCo u rtFLD’ s

“ J o u rn al En t ry

o f Sup p o rt ” en t eredi n 2 0 1 4 award ed p et i t io n er t h e d ep en d en cy
ex em p t i o n d edu ct i o n , th e St at e co u rto rd er d o es n o tel im in at e t he ad d i t i o n al
s t atu to ry req u i rem en t s fo r s up p o rt i n g d o cu m en t at i o n t o d et erm i n e d edu ct i o n el i g i b i l i ty fo r Fed eral t ax p u rp o s es . In d eed , i ti s the Co d e an d n otSt at e co u rt
o rd ers th atd et erm i n es o n e’ s el ig i b i l i t y fo r a d edu ct i o n fo r Fed eral i n co m e t ax p u rp os es . Sh en kv . Co m m i s s i on er, 1 4 0 T.C. 2 0 0 , 2 0 6 (2 0 1 3 ); Seel i ger v . Co m m i s s i o n er, at* 8
. Acco rd i ng l y , BB i s n o tp et i t i o n er’ s qual i fy i n g ch i l d o r qu al i fy i n g rel at i v e
u n d er s ect i o n 1 5 2 (c), (d ), o r (e) wi t h res pect t o h i s 2 01 5 o r 2 0 1 6 t ax y ear. W i tho u t Fo rm 8 3 3 2 , o r a s i m i l ar wri t t en s t at em en tco nt ai n i n g t h e i n fo rm at io n p res cri b edb y

8 (...co n t in u ed ) 1 9 8 4 ). Th e 1 9 8 4 am en dm en t s t o s ec. 1 5 2(e) t erm i nat edth e u s e o f a d iv o rce d ecree o r o t h er s up p o rto r m ai n t en an ce i n st ru m en t ’ s al l o cat i o n o f t h e ri g htt o cl ai m th e d ep en d en cy

ex em p t i o n d edu ct i o n i n d et erm i n i n g d i v o rcedp aren t s ’ en t i t l em en tt o th e ex em

p t i o n an ds ubs t i tu tedth e req u i rem en tth atth e cu s t od i al p aren ts i g n a wri t ten d ecl arat i o n th ath e o r s h e wo u ldn o tcl ai m th e d edu ct i o n . See s ec. 1 5 2(e)(2 ); s ec. 1 .1 5 2-4 T, Tem p o raryIn co m e Tax Reg s., 4 9 Fed . Reg
. 3 4 4 5 9 (Au g. 3 1 , 1 9 8 4).- 1 8 -

[* 1 8 ] s ect i o n 1 5 2(e)(2 ), at t ach edt o each o f h i s 2 0 1 5 an d 2 0 1 6 t ax return s , th e Co u rtco n cl u d es th atp et i t i o n er i s n o ten t i t l edt o cl ai m BB as a d ep en d en tfo r 2 0 1 5
o r 2 0 16 p u rs u an t t o s ect i o n 1 5 2 (e). See Swi n t v . Co m m i s s io ner, 1 4 2 T.C. 1 3 1 , 1 3 9 (2 01 4 ). III. Heado f Ho u s eh o ldFi l i n g St atu s Sect io n 1 (b ) p ro v i d es a s p eci al t ax rat e fo r ani n di v idu al wh o qu al ifi es as a h ead of h o us eh o l d . Sect i o n 2 (b ) d efi n es h eado f h o u seh o l d, as rel ev an t h erei n , as
an i n d iv i du al wh o : (1 ) i s u n m arri edas o f t h e cl o s e o f t h e t ax ab le y ear an di s n o ta
s u rv i v i n g s p o u s e an d(2 ) m ai n t ai n s as h i s h o m e a h o u s eh o l dth at co n s t i tu t es fo r
m o re th an o ne-h al f o f t h e t ax ab l e y ear t h e p ri n ci p al p l ace o f ab od e, as a m em b er o f
s u ch ho u s eh o l d, o f (a) q ual i fy i n g ch i ldo f t h e i n d i v i du al (as d efi n edi n s ect i o n 1 5 2 (c)), o r (b ) an y ot h er p ers o n wh o i s a d ep en d en to f t h e t ax p ay er, i f t h e t ax p ay er i s en t i t l edt o a d edu ct i o n fo r t h e t ax ab l e y ear fo r t h at p ers on u n d er s ect i o n 1 5 1
. See Ro we v . Co m

m i s s i on er, 1 2 8 T.C. 1 3 , 1 6 -1 7 (2 0 0 7 ). As d i s cu s s edab ov e, BB i s n o tp et i t i o ner’ s qu al i fy i n g ch i l d u n d er s ect i o n 1 5 2 (c) fo r 2 0 1 5 o r 2 0 1 6 . No r i s p et i t i o n er o t h erwi s e en t i t l edt o a d ep en d en cy
ex em p t i o n d edu ct i o n fo r BB u nd er s ect i o n 1 51 fo r 2 0 1 5 o r 2 01 6
. Th erefo re, p et i t i o n er d o es n o t qu al ify fo r h ead o f h o u s eh o ldfi l in g s t atu s fo r 2 0 1 5 o r 2 0 1 6
.- 1 9 -

[* 1 9 ] IV. Ch i l dTax Cred i tan dAd d i t i o n al Ch i ldTax Cred i t A t ax p ay er m ay

cl ai m a ch i l d t ax cred i tfo r an i n d i v i du al wh o i s h i s

“ qu al i fy i n g ch i l d” as d efi nedi n s ect i o n 1 5 2 (c) an d h as n o tat t ai n edag e 1 7 du ri n g th e t ax ab l e y ear. Sec. 2 4 (a), (c). Un d er s ect i o n 2 4 (d ) a p ort i on o f t h atcred i t -- co m m o n ly referred t o as th e ad d i t i o n al ch i l dt ax cred i t --i s refu n dab l e. Becau s e BB i s n o tp et i t i o n er’ s qu al i fy i n g ch i l du n d er s ect i o n 1 52 (c) fo r 2 0 1 5 o r 2 0 1 6 , p et i t io n er i s n ot en t i t l edt o ei t h er a ch i ldt ax cred i t o r an ad d i t i o n al ch i l dt ax cred itfo r 2 0 1 5 o r 2 0 1 6
. V. Earn edIn co m e Tax Cred i t Sect io n 3 2 (a)(1 ) al l o ws an el i g i b l e i n d iv i du al an earn edi nco m e t ax cred i tt o
o ffs etth ati n d i v idu al ’ s t ax l i ab i l i t y , s ub jectt o a p h as eo u tex p l ai nedi n s ect i o n 3 2 (a)(2 ). Th e am o u n t o f t h e cred i tt o wh i ch an el i gi b l e i n d i vi dual i s en t it l ed i n creas es i f t h e i n di v i du al h as a qual i fy i n g ch i l d . Sec. 3 2(b ), (c)(3 ). Ag ai n, a qu al i fy in g ch i l dfo r p u rp o s es o f s ect i o n 3 2 i s g en eral l y d efi n ed as an i n d i v idu al wh o i s t he t ax p ay er’ s “ qu al i fy i n g ch i l d ” as d efi n edi n s ect i on 1 5 2 (c). Sec. 3 2 (c)(3 )(A). As d i s cu s s eds up ra, BB i s n o t p et it i on er’ s qu al ify i n g ch i l du n d er
s ect i on 1 5 2 (c) fo r 2 0 15 o r 2 0 1 6
. A t ax p ay er wi t h o u tan y qu al i fy i n g ch il dren m ay b e el i g i b l e fo r t h e earn ed i n co m e t ax cred i t fo r 2 0 1 5 an d2 0 1 6 , b u t o n l y i f h i s ad ju st edg ro ss i n co m e d i dn o t- 2 0 -

[* 2 0 ] ex ceed$ 1 4 ,8 2 0 fo r 2 01 5 an d$ 1 4 ,8 8 0 fo r 2 0 1 6 i f h e was n o tfi l i n g a jo i n t retu rn . See Rev . Pro c. 2 0 1 4 -6 1 , s ec. 3 .0 6 (1 ), 2 01 4 -4 7 I.R.B. 8 6 0 , 8 6 3 ; Rev . Pro c. 2 0 1 5 -5 3 , s ec. 3 .0 6 (1 ), 2 01 5 -4 4 I.R.B. 6 1 5 , 6 1 9
. Pet i t i o n er’ s ad ju s t ed g ro s s i n co m e fo r b o th 2 0 15 an d2 0 1 6 ex ceed edth o s e am ou n t s . Th erefo re, h e i s n o t
en t i t l edt o th e earn ed i n co m e t ax cred i tfo r 2 0 1 5 o r 2 0 16
. VI. Edu cat i on Cred it s Th e Co d e al l o ws fo r a v ari et y o f edu cat i o n cred i t s , i n cl u d in g th e Am eri can Op p o rtu n i ty

Cred i t . See s ec. 2 5 A(i ). A t ax p ay er m ay cl ai m a cred i t fo r qu al i fi ed tu i t i o n an drel at edex p en s es p ai d wi t h p ro ceed s fro m a s tu d en tl o an , ev en i f t h o s e p ro ceed s are p ai db y

th e l en d er d i rect l y

t o th e edu cat io n al i n s t i tu t i o n o n th e
s tud en t ’ s b eh al f. See s ec. 1 .2 5 A-5 (b )(1 ), In co m e Tax Reg s .; s ee al s o Terrel l v . Co m m i s s i o n er, T.C. M em o . 2 0 1 6 -8 5 . Lo an p ro ceed s d i sb u rs edd i rect l y t o an edu cat i o n al i n st i tut io n are t reat edas b ei n g p ai db y t he s tu d en to n th e d at e th e i n s t i tu t i o n cred i ts th e p ro ceed s t o th e s tu den t ’ s acco u n t . See s ec. 1
. 2 5 A-5 (e)(3 ), In co m e Tax Reg s .; s ee al s o Terrel l v . Co m m i s s i on er, at* 5-* 6
. Th e reco rdi n cl u d es p et i t i o n er’ s 2 0 1 5 an d2 0 1 6 s tu d en tacco u n t s tat em en ts
an d 2 0 1 5 an d2 0 1 6 Fo rm s 1 0 9 8 -T. Th e 2 0 15 s tu d en t acco u n ts t at em en ts h o ws tu i t i o n an drel at edex p en s es fo r t h e fal l 2 0 1 5 s em es t er. Itfu rt h er s h o ws th ata Fed eral Pel l g ran t was award edt o p et i t i o n er fu l l y co v eri n g h i s tu it i on an drel at ed- 2 1 -

[* 2 1 ] ex pen ses . Becau s e p et i t io n er d idn o tp ay h is qual i fi edtu i t i o n an d rel at ed
ex p en s es i n 2 0 1 5 , h e i s n o ten t i t l edt o an edu cat i o n cred ito r an Am eri can Op p o rtu n i ty

Cred i tfo r 2 0 1 5. See s ec. 2 5A(g )(2 ); s ec. 1 .2 5 A-5 (c)(1 ), In co m e Tax Reg s. Th e 2 0 1 5 s tu d en tacco u n ts t at em en tal s o s h o w s tu i t i o n an drel at ed ex p en s es fo r t h e s p ri n g 2 0 1 6 s em es t er. Th e 2 0 1 6 s tud en tacco u n t s t at em en t s ho ws tu i t i o n
an d rel at edex pen s es fo r t he fal l 2 0 1 6 s em es t er. Th e 2 0 16 s tu d en t acco u n t
s t at em en tfu rt h er s h o ws t h at a Fed eral Pel l g ran twas award edt o p et it i on er fo r t h e
s p ri n g 2 0 1 6 s em es t er an dthe fal l 2 0 1 6 s em es t er. Pet i t i o ner’ s t o t al 2 0 1 6 Fed eral Pel l g ran tawardd i dn o tfu l l y co v er h i s qu al ifi edtu it i on an drel at edex p en ses . Pet i t io n er u s edl oan p ro ceed s fro m Fed eral s tu d en t l o an s t o p ay th e d i fferen ce b et ween h i s Fed eral Pel l g ran taward s an dh i s qu al i fi edtu i t i o n an drel at ed
ex p en s es . BCCC m ay

h av e ch arg eda p o rt i o n o f p et it i on er’ s s p ri n g 2 0 16 s em es t er
ex p en s es t o h i s acco un ti n 2 0 1 5 , b u tth e l oan p ro ceed s t hath e u s edt o p ay tu i t i o n
an d rel at edex pen s es were n o t d i s b u rs edo r cred i t edt o h i s acco u ntu n ti l 2 01 6 . He i s therefo re t reat edas h av i ng p ai dth o s e ex p en s es i n 2 0 1 6 . Si nce h e i s a cas h b as i s t ax p ay er, 2 0 1 6 was t h e p ro p er y ear fo r wh i ch t o cred ith i s s p ri n g 2 0 1 6 s em es t er- 2 2 -

[* 2 2 ] ex pen ses . See s ec. 1 .2 5 A-5 (e)(3 ), In co m e Tax Reg s . 9 Th erefo re, p et i t i o n er i s en t i t l edt o an edu cat i o n cred i tfo r 2 0 1 6 fo r t h e p o rt i o n o f h i s qual i fi edtu i t i o n
an d rel at edex pen s es n o tp ai dwi t h Fed eral Pel l g ran tp ro ceed s b u t p ai dwi t h p ro ceed s fro m

Fed eral d i rect s tu d en tl o an p ro ceed s. See s ec. 1 .2 5 A-5 (c)(1 ), (e)(3 ), In co m e Tax Reg s . VII. Co n cl u si o n Pet i t i o ner i s n o t BB’ s cu s t o d i al p aren t , an dBB i s n oth i s qu al ify i n g ch i l do r rel at i v e u n d er s ect i o n 1 5 2 (c), (d ), o r (e) fo r 2 0 1 5 o r 2 01 6 . Pet i t i o ner d i dn o t
o b t ai n Fo rm

8 33 2 o r a s i m i l ar wri t t en s t at em en tfro m BB’ s m o t h er, t h e cu s t o d i al p aren t , t o cl ai m a d ep en d en cy ex em p ti o n d edu ct i o n ; t h u s , h e i s n o ten t i t l edt o o n e. Ad d i t i o n al l y , b ecau s e BB i s n o tp et i t i o n er’ s qu al i fy i n g ch i l d u nd er s ect i on 1 5 2 (c), p et i t i o n er i s n o ten t i t l edt o h eado f h o u s eh o l dfi l i ng s t atu s an da ch i l d t ax cred i to r ad d it i o n al ch i l d t ax cred i tfo r 2 0 1 5 o r 2 01 6
. Nei t h er i s h e en t i t l edt o an earn ed i n co m e t ax cred i t fo r 2 0 1 5 o r 2 0 1 6 b ecau s e BB i s n o th i s qu al i fy in g ch il d u n d er

9 Gen eral l y

an edu cat i o n cred i ti s al lo wedo nl y fo r p aym en ts o f qu al i fi ed tu i t i o n an drel at edex p en s es fo r an acad em i c p eri o db eg i n n in g i n t h e s am e t ax ab l e y ear t h atth e p aym en t i s m ad e. Sec. 1 .2 5 A -5 (e)(1 ), In co m e Tax Reg s . If a t ax p ay er p rep ay s qual i fi edtu it i o n fo r an acad em i c p eri o d t h atb eg i n s du ri n g th e fi rs tth ree m o n th s o f t h e t ax p ay er’ s n ex t t ax ab l e y ear, t h e edu cat i o n cred i ti s al l o wed fo r t h e y ear t h e p aym en t i s m ad e. Sec. 2 5 A (g )(4 ); s ec. 1 .2 5 A-5 (e)(2 ), In co m e Tax Reg s . As d i s cu s s eds up ra, p et i t i o ner p ai dh i s s pri n g 2 01 6 s em es t er tu i t i o n i n 2 0 16 wh en h i s l o an was d i s b u rs ed . Th erefo re t h e p rep aym en tru l e h as n o rel ev an ce h ere.- 2 3 -

[* 2 3 ] s ect i o n 1 5 2(c) an dh i s ad ju s t edg ro s s i n co m e ex ceed ed$ 1 4,8 20 fo r 2 0 1 5 an d $ 1 4 ,8 8 0 fo r 2 0 1 6
. Fi n al l y , p et i t i o n er i s n o ten t i t l edt o an educat i on cred i to r an Am eri can Op p o rtu n i ty

Cred i tfo r 2 0 1 5 b ecau s e al l h i s qu al i fy i n g tui t i o n an drel at edex p en s es were p ai dwi t h a Fed eral Pel l g ran t . Ho wev er, p et i t i o ner i s en t i t l edt o an edu cat i o n cred i tfo r 2 0 1 6 b ecau s e h e p ai da p o rt i o n o f h i s qu al i fy i n g tui t i o n an d rel at ed ex p en s es i n 2 01 6
. Th e Co u rth as co n s i d eredal l th e o t h er arg u m en t s o f t h e p art i es , an dt o th e
ex t en tn o td i s cu ss edab o v e, fi n d s th o s e arg u m en t s t o b e i rrel ev an t , m o o t , o r wi th o u tm eri t . To refl ectthe fo reg o i n g , Deci s i o n wi ll b e en t eredfo r
res p o nd en t i n d o ck et No . 1 6 2 5 0 -1 7 as t o th e d efi ci en cy

an d fo r p et i t i o ner as t o th e p en al t y . Deci s i o n wi ll b e en t eredu n d er Ru l e 1 5 5 i n d o ck et No . 1 0 1 0 4 -1 8
.