Max Schneier v. Commissioner of Internal Revenue

EUGENE A. WRIGHT, Circuit Judge:

We consider here whether 26 U.S.C. § 152(e)(2)(A) prevents a stepfather from claiming dependent exemptions for his stepchildren even though he provided over half their support. The tax court upheld the Commissioner’s determination that the natural father was entitled to the exemptions pursuant to a divorce decree under which he had made the required support payments.

FACTS

Prior to 1978, Judy Schneier divorced her first husband, Stephen Stackel. The separation agreement provided that, if Stackel made the required support payments, he could claim dependent…