topic Why is my standard tax deduction when filing only showing up as $4255 when it should be around 12k? in Get your taxes done using TurboTax

Why is my standard tax deduction when filing only showing up as $4255 when it should be around 12k?

jlloydwilk — Tue, 23 Mar 2021 03:44:07 GMT

I am a single dependent in school without any dependents of my own. No house, car, or medical payments. If I understood the standard deduction breakdown TurboTax showed me, shouldn't I be getting a standard deduction of closer to 12 thousand?

Re: Why is my standard tax deduction when filing only showing up as $4255 when it should be around 12k?

rjs — Tue, 23 Mar 2021 04:01:47 GMT

The $12,400 standard deduction is for someone who is not a dependent. For a dependent who is single, under 65, and not blind, the standard deduction is the greater of $1,100 or your earned income for the year plus $350 (but not more than $12,400). So if your earned income is $3,905, your standard deduction is $3,905 + $350 = $4,255.

Note that it's based on your earned income, not total income. Earned income is basically income from working. However, for calculating the standard deduction for a dependent, taxable scholarship income is treated as earned income.

Re: Why is my standard tax deduction when filing only showing up as $4255 when it should be around 12k?

jlloydwilk — Tue, 23 Mar 2021 04:12:17 GMT

Thanks! That explains it. Earned income has been slow this year due to the movie theaters being closed. Appreciate the help, didn't know standard deduction depended on earned income. Kudos.