Exemptions (Personal and dependency) - Uncle Fed's Tax*Board

spouse, relative to amounts claimed for the support
of their child, constitutes a prohibited disclosure
of confidential matters. (Sec. 7213, ’86
Code.)
Rev. Rul. 58-120, 1958-1 C.B. 498.
222.59 Support; child in State training
school. Amounts expended by a State, as custodian,
for room, board, and education of a child
committed to a State training school are taken into
account in determining a dependency exemption.
Such amounts are not a scholarship. Rev. Ruls.
59-379 and 61-186 distinguished. §§1.151-2,
1.152-1. (Secs. 151, 152; ’86 Code.)
Rev. Rul. 71-491, 1971–2 C.B. 114.
222.60 Support; educational benefits; Navy
assistance program. Educational benefits
received by the taxpayer’s minor son under the
U.S. Navy’s educational assistance program are
not excludable from the son’s gross income as a
scholarship where the son is obligated to render
the Navy services as an employee for a stipulated
period upon graduation. The value of such benefits
must be considered by the taxpayer in determining
whether he has contributed more than onehalf
of his son’s support in order to claim a
dependency exemption. §§1.61-1, 1.117-4,
1.151-3, 1.152-1. (Secs. 61, 117, 151, 152; ’86
Code.)
Rev. Rul. 580-403, 1958-2 C.B. 49.
222.61 Support; electric organ. The cost of an
electronic organ, purchased for the sole benefit of
a child with an intense interest in music and considerable
musical ability constituted a support
item. (Sec. 152, ’86 Code.)
Virginia M. Cramer, 55 T.C. 1125, Acq., 1971-2
C.B. 2.
222.62 Support; funeral expenses. Expenditures
for the funeral of a dependent may not be
taken into account in determining whether a taxpayer
contributed over half of the support of a
claimed dependent. §1.152–1. (Sec. 152, ’86
Code.)
Rev. Rul. 65-307, 1965-2 C.B. 40.
222.63 Support; household expenses; allocation.
Where several members of a household contribute
to its support, consideration should be
given to the amount actually used in supporting
the various members of the household. Expenses,
equally applicable to the support of each household
member should be allocated equally, and the
actual expenses, not the fair rental value of such
house, should be considered. Modified by Rev.
Rul. 58-302; distinguished by Rev. Rul. 64-222;
clarified by Rev. Rul. 72–591. §38.25–2. (Sec. 25,
’39 Code; Sec. 151, ’86 Code.)
Rev. Rul. 235, 1953-2 C.B. 23.
222.64 Support; household expenses; allocation.
Where several members of a household contribute
to the support of the household, the contributing
members will be presumed, in the absence of
evidence of actual support, to have pooled their
contributions to be used equally for the support of
each such member. Members receiving more than
they contribute will be considered to have
received support from members receiving less
than they contribute to the extent the amount considered
to have been received exceeds the amount
contributed. Moreover, where contributions to the
support of a household are made by both members
of the household and an outsider not sharing in the
common fund, in the absence of evidence of actual
support, the outsider’s contribution will be allocated
equally among the members of the household.
Rev. Rul. 235 distinguished and Rev. Rul.
54-419 modified. Clarified by Rev. Rul. 72-591.
§1.152-1. (Sec. 152, ’86 Code.)
Rev. Rul. 64-222, 1964-2 C.B. 47.
222.65 Support; household expenses; uncontradicted
designations. Uncontradicted designations
of support funds will be given effect to the
extent that the householder’s own income does not
exceed his pro rata share of the total support.
Guidelines to be followed in applying this rule are
provided. Rev. Ruls. 235 and 64-222 clarified.
§1.152-1. (Sec. 152, ’86 Code.)
Rev. Rul. 72-591, 1972-2 C.B. 84.
222.66 Support; items. Income and social
security taxes paid by a dependent from his own
income are not considered items of support for the
purpose of determining dependency exemptions.
However, “support” does include church contributions,
as well as such other items of expense
as the cost of food, shelter, clothing, medical and
dental care, education, etc. §1.152-1. (Sec. 152,
’86 Code.)
Rev. Rul. 58-67, 1958-1 C.B. 62.
222.67 Support; life care payment to home
for aged. A taxpayer who placed his aged father
in a tax-exempt religious home for life and paid in
advance, based on an eight-year life expectancy, at
the rate of $1,200 per year and pays for his father’s
clothing and surgical expenses and furnishes him
spending money is considered to have contributed
$1,200 a year (plus cash outlays) towards the support
of his father. §1.151-1. (Sec. 151, ’86 Code.)
Rev. Rul. 58-303, 1958-1 C.B. 61.
222.68 Support; lodging. Support furnished in
the form of lodging is measured in terms of its fair
rental value in determining who furnished over
half the support of a dependent. Rev. Rul. 235
modified. §§39.25–2, 1.152–1. (Sec. 25, ’39
Code; Sec. 152, ’86 Code.)
Rev. Rul. 58–302, 1958–1 C.B. 62; William C.
Haynes, 23 T.C. 1046, Acq., 1958-1 C.B. 5; Emil
Blarek, 23 T.C. 1037, Nonacq. withdrawn and
Acq. substituted, 1958-1 C.B. 3.
222.69 Support; medical expenses. To determine
whether a taxpayer has supplied over half of
the “support” of an individual for purposes of the
dependency exemption, the cost of the individual’s
medical care shall include the premiums of a
medical care policy under which the individual is
covered but not the benefits under the policy, but
shall not include payments provided by a tort-feasor
(or his insurance company) who has injured the
individual, nor services provided in government
medical facilities under the provisions of the
Dependents’ Medical Care Act of 1956. §1.152-1.
(Sec. 152, ’86 Code.)
Rev. Rul. 64-223, 1964-2 C.B. 50.
222.70 Support; medicare benefits. Basic
medicare benefits underpart A of title XVIII of the
Social Security Act are not includible in gross
income or the limitation on retirement income
credit but are includable in support computation as
the contribution of the person for whom it was
paid. Supplementary medicare benefits underpart
B are not includible in gross income, support computation,
or in the limitation on retirement income
credit. Revoked in part by Rev. Rul. 79–173.
§§1.37-4, 1.61-1, 1.152-1. (Secs. 37, 61, 152; ’86
Code.)
Rev. Rul. 70-341, 1970-2 C.B. 31.
222.71 Support; medicare benefits. Basic
medicare benefits received by or on behalf of an
individual are disregarded in the computation of
support for purposes of sections 151 and 152.
§§1.151-2, 1.152-1. (Secs. 151, 152; ’86 Code.)
Rev. Rul. 79-173, 1979-1 C.B. 86.
222.72 Support; missionary son. Payments
made to a missionary from a church fund as reimbursement
for travel and living expenses incurred
in the services of his church are not includible in
the missionary’s gross income. Contributions to
the church fund by the parent of the missionary are
Exemptions (Personal and dependency)
deductible as charitable contributions if the organization
has full control of the donated funds and
discretion as to their use. The parent may claim the
dependency exemption where the son’s gross
income is less than $600 (excluding the reimbursed
expenses) and amounts furnished directly
by the parent to his son constitute more than onehalf
of his total support for the calendar year.
§§1.61-1, 1.151-2, 1.170-1. (Secs. 61, 151, 170;
’86 Code.)
Rev. Rul. 62–113, 1962-2 C.B. 10.
222.73 Support; National Defense Education
Act grant. A stipend received under Title IV of the
National Education Act of 1958 constitutes a
scholarship grant and should be disregarded in
determining whether the recipient’s parent provided
more than one-half of the recipient’s support.
However, that part of the stipend used by the
recipient for the support of his wife and children
should be considered in determining whether the
parent is entitled to a dependency exemption for
furnishing more than one-half of the support of the
recipient’s wife and children. §§1.117–3, 1.151–2,
1.152-1. (Secs. 117, 151, 152; ’86 Code.)
Rev. Rul. 61–53, 1961-1 C.B. 21.
222.74 Support; parents maintained in convalescent
home. A taxpayer who paid over onehalf
the total support of parents confined in a convalescent
home is entitled to a deduction for
medical expenses paid for the parents, a dependency
exemption for the mother who had less than
$750 gross income, and qualifies as head of household,
even though personal funds of the parents in
excess of one-half the cost of their support for the
year were deposited in joint savings accounts
which were opened with the taxpayer’s name
added to avoid probate expenses in the event of the
death of both parents. Under state law the taxpayer
had no current ownership right in the funds and
therefore, was not reimbursed for the expenses
paid. (Secs. 2, 151, 213; ’86 Code.)
William C. Jewell, 69 T.C. 791, Acq., 1978-1
C.B. 2.
222.75 Support; room and board furnished
student nurses. The value of room and board furnished
by accredited schools of nursing, to fulltime
student nurses, a part of whose training consists
of performing services in the hospital,
constitute scholarships. The value of such contributed
services and accommodations should be disregarded
in determining whether the student
nurses received more than one-half of their support
from the parent for the purpose of determining
a personal exemption allowance. §§1.117–1,
1.151-2, 1.152-1. (Secs. 117, 151, 152; ’86
Code.)
Rev. Ru1. 58-338, 1958–2 C.B. 54.
222.76 Support; serviceman’s allotment. A
member of the Air Force, who provided a Class Q
allotment for his mother, who uses the amount
thereof for her support and the support of the member’s
two minor sisters, may be allowed dependency
exemptions for his mother and his two
minor sisters for whom he has furnished more than
one-half the support. §1.152–1. (Sec. 152, ’86
Code.)
Rev. Rul. 63-14, 1963-1 C.B. 29.
222.77 Support; serviceman’s quarters
allowance. A serviceman may take into consideration
the entire amount furnished to an individual,
including the tax-exempt basic allowance for
quarters received under the Career Compensation
Act of 1949, as amended, and used for the support
of the individual in determining whether he furnished
more than one-half of such individual’s
support. I.T. 4092 superseded. §1.152–1. (Sec.
152, ’86 Code.)
Rev. Rul. 70-87, 1970-1 C.B. 29.
222.78 Support; social security benefits. Survivors
insurance benefit payments made under the