I'm a full time college student and with earned (working) and unearned income (unearned due to a 529 gift in the amount of the scholarship I received from my school). My total income is above $12K. Am I able to take the full $12K single deduction since it is less than my total income or am I subject to a lesser amount since 1) my parents claimed me as a "credit for other dependent" on their form and 2) I had earned and unearned (529 earnings) income? If I understood the IRS correctly, I think they were trying to tell me that I had to use the Kiddie formula for the standard deduction (greater of $1,050 or earned income + $350). I understood their formula for the adjusted deduction of less than $12K, but did not understand if it applied to me because of 1) my parents listing me as a "credit for other dependent" or 2) due to the unearned income from the gain on the 529 gift or 3) both. I had a feeling that it had to due with the unearned income; the earnings listed on the 1099Q.
