‘‘(a) GENERAL DEFINITION.—For purposes of this
subtitle—
‘‘(1) 
DEPENDENT.—The 
term 
‘dependent’
means—
‘‘(A) any individual described in paragraph
(2) over half of whose support, for the calendar
year in which the taxable year of the taxpayer
begins, was received from the taxpayer (or is
treated under subsection (c) as received from
the taxpayer), or
‘‘(B) any individual described in subsection
(f).
‘‘(2) INDIVIDUALS.—An individual is described
in this paragraph if such individual is—
‘‘(A) a brother, sister, stepbrother, or step-
sister of the taxpayer,
‘‘(B) the father or mother of the taxpayer,
or an ancestor of either,
‘‘(C) a stepfather or stepmother of the tax-
payer,
‘‘(D) a son or daughter of a brother or sis-
ter of the taxpayer,
‘‘(E) a brother or sister of the father or
mother of the taxpayer,
‘‘(F) a son-in-law, daughter-in-law, father-
in-law, mother-in-law, brother-in-law, or sister-
in-law of the taxpayer, or
‘‘(G) an individual (other than an indi-
vidual who at any time during the taxable year
was the spouse, determined without regard to
section 7703, of the taxpayer) who, for the tax-
able year of the taxpayer, has as their principal
place of abode the home of the taxpayer and is
a member of the taxpayer’s household.’’.
(b) OTHER MODIFICATIONS.—Section 152 of the In-
ternal Revenue Code of 1986 is amended by adding at the
end the following:
‘‘(f) SUBSECTION (f) DEPENDENTS.—
‘‘(1) IN GENERAL.—An individual is described
in this subsection for the taxable year if such
individual—
‘‘(A) bears a relationship to the taxpayer
described in paragraph (2),
‘‘(B) except in the case of an eligible foster
child or as provided in subsection (e), has the
same principal place of abode as the taxpayer
for more than one-half of such taxable year,
and
‘‘(C)(i) has not attained the age of 19 at
the close of the calendar year in which the tax-
able year begins, or
‘‘(ii) is a student (within the meaning of
section 151(c)(4)) who has not attained the age
of 24 at the close of such calendar year.
‘‘(2) RELATIONSHIP TEST.—An individual bears
a relationship to the taxpayer described in this para-
graph if such individual is—
‘‘(A) a son or daughter of the taxpayer, or
a descendant of either, or
‘‘(B) a stepson or stepdaughter of the tax-
payer.
‘‘(3) SPECIAL RULES.—
‘‘(A) 2 OR MORE CLAIMING DEPENDENT.—
Except as provided in subparagraph (B), if an
individual may be claimed as a dependent by 2
or more taxpayers (but for this subparagraph)
for a taxable year beginning in the same cal-
endar year, only the taxpayer with the highest
adjusted gross income for such taxable year
shall be allowed the deduction with respect to
such individual.
‘‘(B) RELEASE
OF
CLAIM
TO
EXEMP-
TION.—Subparagraph (A) shall not apply with
respect to an individual if—
‘‘(i) the taxpayer with the highest ad-
justed gross income under subparagraph
(A), for any calendar year signs a written
declaration (in such manner and form as
the Secretary may by regulations pre-
scribe) that such taxpayer will not claim
such individual as a dependent for any tax-
able year beginning in such calendar year,
‘‘(ii) the other taxpayer provides over
half of such individual’s support for the
calendar year in which the taxable year of
such other taxpayer begins, and
‘‘(iii) such other taxpayer attaches
such written declaration to such taxpayer’s
return for the taxable year beginning dur-
ing such calendar year.’’.
(c) RULES RELATING TO FOSTER CHILD.—Section
152(b)(2) (relating to rules relating to general definition)
is amended by striking ‘‘a foster child’’ and all that follows
through ‘‘individual)’’ and inserting ‘‘an eligible foster
child (as defined in section 32(c)(3)(B)(iii)) of an indi-
vidual’’.
(d) EXEMPTION FROM GROSS INCOME TEST.—Sec-
tion 151(c)(3) (relating to definition of child) is amended
by striking ‘‘or stepdaughter’’ and inserting ‘‘step-
daughter, or a descendant of such individual’’.
(e) WAIVER OF DEDUCTION FOR DIVORCED PAR-
ENTS.—
(1) IN GENERAL.—So much of section 152(e)
as precedes paragraph (4) (relating to support test
in case of child of divorced parents, etc.) is amended
to read as follows:
‘‘(e) SPECIAL RULES FOR CHILD OF DIVORCED PAR-
ENTS.—
‘‘(1) RELEASE OF CLAIM TO EXEMPTION.—In
the case of a child (as defined in section 151(c)(3))
of parents—
‘‘(A) who are divorced or legally separated
under a decree of divorce or separate mainte-
nance,
‘‘(B) who are separated under a written
separation agreement, or
‘‘(C) who live apart at all times during the
last 6 months of the calendar year,
the custodial parent who is entitled to the deduction
under section 151 for a taxable year with respect to