Eligibility Criteria:
Collective Support: Two or more individuals together provide more than 50% of the person's total support.
Individual Contribution: Each contributing individual must have provided more than 10% of the person's support during the tax year.
Qualifying Relationship: Each contributor would have been eligible to claim the person as a dependent if they had provided more than half of the support. irs.gov
Form 2120 – Multiple Support Declaration:
Purpose: The individual designated to claim the dependent must file Form 2120 with their tax return.
Requirements: This form identifies each contributor who provided more than 10% of the support and includes a declaration that these contributors have agreed not to claim the person as a dependent. irs.gov
Written Declarations:
Obtaining Statements: The claimant must secure a signed statement from each contributor who provided more than 10% of the support, waiving their right to claim the dependent for that tax year.
Recordkeeping: While these signed statements are not submitted to the IRS, the claimant must retain them as part of their tax records. irs.gov
Example Scenario:
Siblings A, B, and C collectively support their parent, with A contributing 40%, B 30%, and C 20% of the total support. Since no single sibling provides more than 50%, but together they provide over half, they can use a Multiple Support Agreement. Any one of them who contributes more than 10% (A, B, or C) can claim the parent as a dependent, provided the others agree and sign statements waiving their claim. irs.gov
By following these guidelines, individuals can ensure compliance with IRS regulations when claiming a dependent under a Multiple Support Agreement.