Question

n certain circumstances, a taxpayer who provides less than half the support of another may still be able to claim that person as a dependent as a qualifying relative. True/false

Answer 1

Answer:

True, through a multiple support agreement signed between 2 or more taxpayers that provide financial support to the same dependent.

Explanation:

Form 2120 allows taxpayers to claim deductions for a relative as a dependent on their tax returns, but since they do not pay at least 50% of their expenses, they cannot claim them under normal rules. Certain conditions must be met, the most important are:

• the taxpayer must pay for at least 10% of the dependent financial needs
• they must have signed a multiple support agreement (the other taxpayers waive their right to claim the person as a dependent).