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. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center