👩‍⚖️Case at a Glance

📅 Issued: April 9, 2025
👩 Petitioner: Melissa Correll
🏛️ Court: U.S. Tax Court, Judge Siegel
📂 Code Sections: 152, 151, 24
📘 Tax Year in Dispute: 2021
⚖️ Decision: For the IRS (Commissioner)

🧵 The Story

Melissa Correll, a Florida mother of three, found herself in Tax Court after the IRS disallowed her claim for a dependency exemption and child tax credit for one of her children, J.M.A., in 2021.

Despite her belief—and a long-followed practice with her ex-husband—that she could claim this child, the tax law and divorce agreement told a different story.

🔍 Key Facts

• Custody Reality: Only one of Correll’s children (A.R.) lived with her in 2021. The child in question (J.M.A.) lived full-time with his father in Georgia.
  
• Divorce Agreement: Updated in 2015, it gave the father the right to claim J.M.A. as a dependent.
  
• No Signed Release (Form 8332): Melissa did not attach a required declaration from the custodial parent (the father) relinquishing his claim.
  
• Both Parents Claimed the same child in 2021.
  

📜 What the Law Says

📌 Dependency Exemption (Section 151 & 152)

To claim a child as a dependent:

• The child must be a “qualifying child”, living with the taxpayer for more than half the year.
  
• If divorced, a noncustodial parent can claim a child only with:
  
  1. A written release from the custodial parent, and
     
  2. That release must be attached to the tax return.
     

Melissa did neither.

💰 Child Tax Credit (Section 24)

A taxpayer can only receive this credit for a child who:

• Meets the “qualifying child” test under Section 152,
  
• And is under age 17.
  

Because J.M.A. didn’t live with Melissa, she failed both the dependency and credit eligibility tests.

🧠 Takeaways for Taxpayers & Professionals

📌 1. Custody Determines the Credit

Living arrangements—not past agreements or informal habits—rule who gets the tax benefits.

📌 2. Paperwork Matters

To claim a dependent as a noncustodial parent, you must have Form 8332 or a similarly signed release—and attach it.

📌 3. Divorce Decrees ≠ IRS Rules

A family court order doesn’t override the Internal Revenue Code. Even if your divorce decree says you “can” claim a child, IRS conditions still apply.

📌 4. Double Claims Trigger Audits

When both parents claim the same child, the IRS flags the return. Tie-breaker rules apply—and typically, the child’s physical residence wins.

🧾 The Final Decision

Melissa Correll was not entitled to:

• A dependency exemption for J.M.A., nor
  
• A child tax credit for him.
  

The Tax Court sided with the IRS, applying clear and settled tax law.

✅ Conclusion

🔒 This case is a sharp reminder that family dynamics and old habits don’t change tax law. For divorced or separated parents, every tax season should begin with reviewing custody, agreements, and IRS forms. Don’t assume—document.

💡 Tax Pro Tip: If you’re the noncustodial parent, always obtain and attach a signed Form 8332 if you plan to claim your child. No form = no deduction.