## Facts

- Betty A. Shapiro, a New York taxpayer, filed a 1966 individual return claiming her son, Michael, as a dependent.
- Shapiro and her former husband separated in 1964 under a written separation agreement later incorporated into and surviving a 1966 divorce decree; Shapiro had custody, and the children lived with her throughout 1966.
- Under the agreement (as modified in 1966), Shapiro received payments from her former husband; portions were attributable to child support.
- Michael attended an eight-week summer residential camp in Maine in summer 1966; total camp cost was $916.66.
- Shapiro paid $417 of the camp cost in 1966 and $499.66 in 1967, but Michael received the camp services in 1966.
- The former husband paid Shapiro $2,700 in 1966; $1,176 was found to have been spent for Michael’s support, and he also paid $447.55 directly for specified items for Michael.
- Both parents claimed Michael as a dependent for 1966.
- The Commissioner determined a $126.48 deficiency, disallowing Shapiro’s dependency exemption for Michael on the ground she did not provide more than one-half of his support.

## Issues

1. Whether the cost of a minor child’s summer residential camp constitutes “support” under I.R.C. § 152(a) for the dependency exemption.
2. Whether the full camp cost should be treated as support furnished in 1966 when part of the bill was paid in 1967.
3. Whether, including the camp cost, Shapiro provided more than one-half of Michael’s total 1966 support and could claim the exemption under § 151.

## Decision

- The Tax Court held that the $916.66 summer residential camp cost was part of Michael’s “support” under § 152(a).
- The court treated the full camp cost as a 1966 support item because the services were furnished to Michael in 1966, even though part was paid in 1967.
- Including the camp cost in the support computation, Shapiro furnished more than one-half of Michael’s total support for 1966.
- The deficiency determination was not sustained as to the dependency exemption for Michael.

## Legal Principles

- For dependency purposes under I.R.C. § 152(a), “support” is construed broadly and may include expenses beyond bare necessities.
- Support may include food, shelter, clothing, medical care, education, and similar expenses; reasonable recreational components may qualify as support.
- In applying the one-half support test, the focus is on support actually furnished to the child during the tax year (i.e., when the child receives the goods or services), not solely on the year in which the taxpayer pays the invoice.
- A parent is entitled to the dependency exemption under § 151 when that parent proves contribution of more than one-half of the dependent’s total support for the year.

## Conclusion

The Tax Court concluded that summer residential camp costs are includable in a child’s support under § 152(a) and, because the camp services were furnished in 1966, the full camp cost counted in that year’s support computation, making Shapiro the parent who provided more than half of Michael’s support and entitling her to the dependency exemption.


Shapiro v. Commissioner, 54 T.C. 347 (1970)