The tax court ruled that divorcing your spouse does not stop you from claiming your stepchildren as dependents on your taxes according to the case of TONY RAY DUNCAN, Petitioner v.COMMISSIONER OF INTERNAL REVENUE, Respondent
The dependency exemption for the stepchildren was upheld because “[t]he relationship of affinity once existing will not terminate by divorce or death of a spouse . Therefore, petitioner’s divorce did not terminate his stepparent-stepchild relationships with B.E. and H.A. Accordingly, they are petitioner’s stepchildren, thus satisfying the relationship test.