Multiple Support Agreement

Multiple Support Agreement

If two or more persons who would otherwise be entitled to an exemption for a dependent other than a qualifying child, together furnish more than half the dependent's support (but no one individual provides more than half), any one of them who furnishes more than 10% of the support is entitled to the exemption if all the others who furnished more than 10% of the support file written declarations that they will not claim an exemption for the individual for that taxable year. Form 2120 is used for this purpose.
References in periodicals archive ?
In community property states, the exemption may be lost unless the taxpayers execute a multiple support agreement.
Deciding who among a group supporting an individual should be entitled to claim the individual as a dependent under a multiple support agreement.
From the standpoint of minimizing taxes for the family as a whole, the taxpayer entitled to claim a dependent under a multiple support agreement should be the one who would realize the greatest tax savings from the medical or nursing home expense deductions.
Head of household filing status is not available to taxpayers who can claim the dependency exemption under a multiple support agreement.
If more than one child shares in a parent's support, multiple support agreements (MSAs) may be used to realize tax savings.
There are exceptions for multiple support agreements and children of divorced parents.
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