Standard Deduction for dependent on 2020 return is 50% of what it was on 2019 return

Forum|Forum|5 years ago
February 28, 2021
1 reply
5 views

I'm helping my son with his tax return. I claim him as a dependent as I did in 2020 (for 2019 tax return). His income was almost the same as in 2019. The standard deduction used on his 2019 return was $4433 and this year it's about half of that so he ends up owing taxes. Has the standard deduction for a single earning under $10K been reduced that much for 2020 or is something else causing this?

xmasbaby0

Level 15

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).

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

scm84Author

Level 2

Thank you for the quick reply. I would have to assume then that the money he earned as a contracted non-employee and reported on a 1099-NEC is being treated as unearned income. That is the only difference between last year and this year and comprises more than 50% of his income for 2020. I'm really surprised that the income on that form is assumed to be unearned.