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Federal Tax Update — January 2017

from AAA-CPA

Proposed Regulations under Code Section 172 clarify the definition of "support" for the dependency allowance, indicating that paid health insurance premiums but not life insurance premiums are treated as support. The Proposed Regulations also provide that, where the highest adjusted gross income of two parents must be determined due to equal custody, all income on a joint tax return of one or both of the parents is to be counted.

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