DawnC
Expert Alumni

Get your taxes done using TurboTax

Yes, it is correct.   If you can be claimed as a dependent by another taxpayer, your standard deduction for 2024 is limited to the greater of: (1) $1,300, or (2) your earned income plus $450 (but the total can't be more than the basic standard deduction for your filing status).   He owes ordinary income tax on his interest income that is over $450.  

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