Question

Frank Sabatino provides 20% of his own support. His four sons, Ron, Bill , Steve and Joe provide the rest. Ron provides 30%, Bill 25%, Steve 15%, and Joe 10%. Who is not eligible to claim Frank as a dependent in a multiple support agreement?

Answer 1

Ans)

As Joe did not contribute more than 10 percent of Frank's support, he is not entitled to claim Frank as a dependent for the taxable year in a multiple support agreement.

Section 152(c) provides that a taxpayer shall be treated as having contributed over half of the support of an individual for the calendar year (in cases where two or more taxpayers contributed to the support of such individual) if -

(1) No one person contributed over half of the individual's support,

(2) Each member of the group which collectively contributed more than half of the support of the individual would have been entitled to claim the individual as a dependent but for the fact that he did not contribute more than one-half of such support.

(3) The member of the group claiming the individual as a dependent contributed more than 10 percent of the individual's support, and

(4) Each other person in the group who contributed more than 10 percent of such support furnishes to the taxpayer claiming the dependent a written declaration that such other person will not claim the individual as a dependent for any taxable year beginning in such calendar year.

Ron, Bill , Steve and Joe are persons each of whom, but for the fact that none contributed more than half of E's support, could claim Frank as a dependent for the taxable year. The four together contributed 80%  of Frank's support, and, thus, each is a member of the group to be considered for the purpose of section 152(c). Ron, Bill , Steve are the only members of such group who can meet all the requirements of section 152(c), and any one could claim Frank as a dependent for his taxable year if he obtained a written declaration (as provided in paragraph (a)(4) of this section) signed by the other, and furnished the other information required by the return with respect to all the contributions to Frank. As Joe did not contribute more than 10 percent of Frank's support, he is not entitled to claim Frank as a dependent for the taxable year nor is he required to furnish a written declaration with respect to his contributions to Frank.