T.I.M.E (in memory of Prof. Daniel Schaffer) suggests that expenses and accounts on form 1040 IRS, section 25 or 48, be shared, up to the maximum, by no more than two paying households for same "dependent".
Young families are struggling to pay child care/health services. Other family members, especially grandparents are "Helpers" and pay. "Helpers" do not receive deductions for expenses because "dependent" does not live with them more than half a year. Furthermore, the money is from the "Helpers" pension funds, thus, they lose pension deductions. Often, they receive penalties for early withdraw.
An act of love and to improve the multigenerational family puts "Helpers" at a financial risk.
Time to help those who help others.
Multigenerational Family Law and Taxes LP
Yael Magen, Esq.