Q. Is he, as my dependent, allowed the standard deduction, or is the amount reduced?
A. Simple answer: the amount is reduced. Dependents do not automatically get the full $12,950 standard deduction. They get a reduced standard deduction, which is the greater of $1150 (2022) or their earned income plus $400. So, if the student-dependent has enough earned income, it is possible for him to get the full $12,950 standard deduction.
Missouri standard deduction is the same as federal standard deduction.
For others reading this, be aware that taxable scholarship is a hybrid between earned and unearned income. It is earned income for purposes of the $12,950 filing requirement and the dependent standard deduction calculation (earned income + $400). It is not earned income for the kiddie tax and other purposes (e.g. EIC). For grad students and post grad fellows (but not undergrads), scholarship, stipend and fellowship income is also earned income ("compensation") for IRA contributions.
