Yes and let's address each of your questions one at a time. Just to make sure though, I assume your daughter is under 18 or a full-time student under 24 and you are claiming her as a dependent on your return. This is the reason to file form 3800.
- The methodology for calculation of the standard deduction is correct based on the percentage of CA income to total Income,
- This does result in taxable income of $400, which results in a $4 tax liability.
- In answering your question, the $400 taxable income is derived from taking $900 and subtracting the $500 standard deduction. The standard deduction is already accounted for thus $400 is still taxable income. You can't apply the standard deduction twice exclude taxable income.
- Do include form 3800 especially if your child falls under the provisions that I stated in my opening paragraph.
- I wish for continued success for you and your daughter in her education as well as successful pursuits in future endeavors.
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