Does college student dependent with 1098-t net income who files a tax return get standard deduction on their return?

[tomandbjm]

Parent is claiming college student as dependent. The 1098-T shows more grants than expenses, net is income. TurboTax does not seem to accept the 1098-T data for parent's return. Student had some W2 income. We did tax return for student and it does show the excess grants as income to her, but there is standard deduction of around $4900 shown on TT, so it negates the addition unearned income 1098-T.  If parent is getting standard deduction, how is it the student also gets one even if she says she can be claimed on someone else's return?  This is confusing to me. Thank you so much for your help. Every year, seems I have something new.

BJ Moersen

[MichaelL1 · Accepted solution]

First the 1098T goes on the dependent's return if there is income from it, and not the parent's return.

The standard deduction for a dependent is computed differently than someone that ca claim themselves.

Standard Deduction:

The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the larger of: $1,050, or the individual's earned income plus $350, but not more than the regular standard deduction (generally $6,350).