Multiple Support Agreement

AAA

DEFINITION of 'Multiple Support Agreement'

An agreement signed by two or more taxpayers who provide financial support for the same dependent. A multiple support agreement allows several persons who jointly support a single dependent to take turns claiming this person as a dependent on their tax returns. Multiple support agreements are used in such cases as when several children each contribute to the support of an aged parent.

INVESTOPEDIA EXPLAINS 'Multiple Support Agreement'

The person who claims the dependent in a given year must submit a Form 2210 signed by all other parties to the agreement. This form gives the taxpayer permission to claim the dependent for that year. Each participant in a multiple support agreement must provide at least 10% of the dependent's support each year, and together the family members must provide more than 50% of the dependent's total support.

RELATED TERMS
  1. Filing Status

    A category that defines the type of tax return form an individual ...
  2. Dependent

    An individual whom a taxpayer can claim for credits and/or exemptions. ...
  3. Prenuptial Agreement

    A type of contract created by two people before entering into ...
  4. Buffett Rule

    A tax rule proposed in 2011, by President Barack Obama, stating ...
  5. Benefits Received Rule

    1. A theory of income tax fairness that says people should pay ...
  6. Generation-Skipping Transfer Tax ...

    A tax incurred when there is a transfer of property by gift or ...
Related Articles
  1. 10 Steps To Tax Preparation
    Taxes

    10 Steps To Tax Preparation

  2. Tax Tips For The Individual Investor
    Retirement

    Tax Tips For The Individual Investor

  3. Taxing Times For Divorced Parents
    Taxes

    Taxing Times For Divorced Parents

  4. Which is better for tax deductions, ...
    Options & Futures

    Which is better for tax deductions, ...

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center