Standard Deduction for dependents Clarification

Forum|Forum|6 years ago
February 1, 2020
3 replies
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So the IRS said the standard deduction for dependents is the dependent's income + $350.

So does this mean no matter how much the dependent makes, the standard deduction is greater than the amount?

Ex: if a dependent makes an unrealistic amount of $1,000,000 then is the standard deduction $1,000,350?

Not A Product Question

Best answer by VolvoGirl

From IRS pub 501

If you are claimed as a dependent on someone else's return......

The Standard Deduction for an individual for whom an exemption can be claimed on another person's tax return is limited to the greater of:

…..$1,100 or

…..Your earned income for the year + $350 (but not more than 12,200)

So you would get a minimum of $1,100

See page 23 of Publication 501 and the worksheet on page 25

http://www.irs.gov/pub/irs-pdf/p501.pdf

KrisD15

Level 15

No.

The deduction is limited to $12,200 for a single filer.

"For 2019, 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 $350 and the individual’s earned income (not to exceed the regular standard deduction amount)."

Forbes

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Carl

Level 11

So the IRS said the standard deduction for dependents is the dependent's income + $350.

No, it says the standard deduction is the dependent's *EARNED* income +$350.

So if the student has $1000 of *earned* income and $500 of interest or dividend income, their deduction is limited to a total of $1350 meaning taxes will be paid on $150 of that dependent's income.