maglib
Level 10

Deductions & credits

@MikSek  the question is "Did the student complete the first 4 years of postsecondary education BEFORE 2020?"  The answer is NO.    He was still in school in 2020.

 

I gave you the standard deduction for 2021.  For both 2019 and 2020, the standard deduction for dependents is the larger of $1,100 or the sum of the dependent's earned income plus $350 (no greater than the std deduction of course.  So if he claims the $5k in income, he may have no tax liability still..

 

It is sadly too late though to claim and IRA for 2020...  I was not thinking.  It is something for others who may read the thread.

 

You would have to post a redacted 8863 to see what is going on.   Possibly the IRS letter with it.  Redact all personal information.

 

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I am NOT an expert and you should confirm with a tax expert.