Regular tax payers (who are not dependents) get a standard deduction of $12,950. Dependents also are allowed a standard deduction, it's just not a fixed $12,950. A dependent's standard deduction is the larger of $1150 or his earned income + $400. If TT is calculating his standard deduction to be $6070, it probably means he has a w-2 for $5670.
The standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,100 or the sum of $400 and the individual’s earned income (not to exceed the regular standard deduction amount).
I know that. But it's TT that is imposing the standard deduction, not us. Question is why would TT put that standard deduction in his return despite checking that he is a dependent on his parents return?
No---TurboTax is not imposing that standard deduction. TurboTax is following the tax LAW -- passed by Congress--- that says his standard deduction is that amount since he can be claimed as a dependent.
Regular tax payers (who are not dependents) get a standard deduction of $12,950. Dependents also are allowed a standard deduction, it's just not a fixed $12,950. A dependent's standard deduction is the larger of $1150 or his earned income + $400. If TT is calculating his standard deduction to be $6070, it probably means he has a w-2 for $5670.
Yes! Thanks. We're working thru how to report 529 draw and the tuition report from the college. I see from other responses that if the qualified educational expenses equal or exceed the 529 draw there is no need to even include those 1099/8's and also not needed for us since income exceeds amount to take the AOC, etc. credits. But TT doesn't make that clear at all.