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Deductions & credits
Except if the bulk of their income still came from you, then over half the parents's support would still be coming from that filer, and so that would not disqualify the parent as a possible dependent.
So if one has a parent who is a us resident, whose support (both documented income and otherwise) comes primarily from the filer, that parent would be unable to be a recipient of the DCFSA funds.
Do we have any clarification from the IRS regarding this scenario? I assume it will be somewhat common due to the coronavirus situation but id be surprised if it hadn't come up before at least in a more limited number of cases. And does anyone know what the possible penalties would look like?
‎September 20, 2020
8:46 AM