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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15037
Experience:  15years with H & R Block. Divisional leader, Instructor
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My other is 98 is in a constant care facility. My tow

Customer Question

My other is 98 is in a constant care facility. My tow brothers and I are paying 75% of her bills under a "Multiple Support Agreement". None of us has claimed her as a dependent. We are each making direct payments to the facility. This was set up by one brother's tax accountant. He stated that if we make the payments this way, we can each deduct the payments that we make for the year.
Please give me your opinion as to whether or not this is a legitimate deduction. Thank you.
Roger Bjork
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello

You can not claim the amounts you pay except in the year you claim her as a dependent. So you each take turns claiming her , rotating each year. Making the payment directly just means it is not under gift tax rules. You could claim the medical deduction if the only reason you could not claim her was her income but that is not the case here because you can take turns.

Sometimes no one provides more than half of the support of a person. Instead, two or more persons, each of whom would be able to take the exemption but for the support test, together provide more than half of the person's support.

When this happens, you can agree that any one of you who individually provides more than 10% of the person's support, but only one, can claim an exemption for that person as a qualifying relative. Each of the others must sign a statement agreeing not to claim the exemption for that year. The person who claims the exemption must keep these signed statements for his or her records. A multiple support declaration identifying each of the others who agreed not to claim the exemption must be attached to the return of the person claiming the exemption. Form 2120 can be used for this purpose.

You can claim an exemption under a multiple support agreement for someone related to you or for someone who lived with you all year as a member of your household. Your mother would not need to live with any of you because parents are exempt from that.

You can not claim the amounts you pay except in the year you claim her as a dependent. So you each take turns claiming her , rotating each year.

Expert:  Robin D. replied 1 year ago.

Please post below if you need me to clarify