Helen M. Lutter v. Commissioner of Internal Revenue

This case raises the question of whether payments made to an indigent parent under the Federal-State “Aid to Families with Dependent Children” (AFDC) program, 42 U.S.C. Sec. 601 et seq., may constitute “support” of the children by the parent for purposes of establishing a dependency exemption under the Internal Revenue Code, 26 U.S.C. Sec. 151. The essential facts have been stipulated.

Mrs. Helen M. Lutter timely filed her federal income tax return for the year 1969, claiming exemptions under Sec. 151 for her two minor children as dependents. The Commissioner disallowed appellant’s claims on…