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. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
  5. Buffett Rule

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

    1. A theory of income tax fairness that says people should pay ...
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, ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center