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New Member
posted Apr 5, 2020 6:11:47 AM

Have a college frshman with $1,449 in income, $3,214 in taxable scholarships and $755 in 1099-Q. Deduction shows up as $1,799. Trying to figure out why it is not $12,200.

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2 Replies
Expert Alumni
Apr 5, 2020 7:04:42 AM

Your standard deduction may be reduced if you are claimed as a dependent on another person's tax return. If you were another person's dependent during a Tax Year, your standard deduction will generally be limited to the greater of $1,100 or your earned income plus $350

In your situation your standard deduction is limited to $1449 + $350= $1799

Level 15
Apr 5, 2020 2:16:07 PM

something still isn't correct 

 

that taxable scholarship is considered earned income, so the standard deduction should be $1449+$350+$3214.