A problem may arise where several family members contribute to the support of a dependent relative such that no one family member provides more than half of the relative’s support. Under the general rule, none of the family members would be able to claim an exemption for the relative as a qualifying relative. However, a special rule exists for these situations. For purposes of determining whether you meet the support requirement, you are treated as having provided over one half of the relative’s support for a calendar year if:
(1) No one person contributed over one-half of the relative’s support;
(2) Over one-half of the relative’s support was received from two or more persons each of whom (but for the fact that any such person alone did not contribute over one-half of the dependent relative’s support) would have been entitled to claim the relative as a dependent for a tax year beginning in that calendar year;
(3) You contributed over 10 percent of the relative’s support; and
(4) Each person described in (2) above (other than you) who contributed over 10 percent of the dependent relative’s support files a written declaration stating that he or she will not claim the relative as a dependent for any tax year beginning in the calendar year.
Form 2120 Multiple Support Declaration, is used for this purpose. If there are more than four eligible persons, a statement must be attached to the return of the taxpayer taking the exemption with the required information.
Please contact the office of Don Fitch Accountancy at (760)567-3110 or Email Don.Fitch@CPA.com if you have any questions or would like additional information.
DON FITCH, CPA
74478 Highway 111 #3
Palm Desert, CA 92260
Toll Free: (877)CPA-Help or (877)272-4357
P.S. My firm is based upon referrals. Please feel free to refer my firm to anyone you know that is looking for a new CPA and/or tax preparer. Thank you in advance.
(Updated 05272021-1 320-589)