Do dependents get the standard deduction?

[hmbemba]

Hello!

I'm a freelancer who is also claimed as a dependent by my parents. 

I understand that as a dependent by another taxpayer, my standard deduction for 2017 is limited to the greater of: (1) $1,050, or (2) your earned income plus $350.

But if my freelance net is 10k does that mean my standard deduction is 10k+350?

That just doesn't seem correct to me.

Thanks!

[BobinCT · Accepted solution]

The standard deduction for a single person under 65 is $6350 unless limited by the rules you cite.  So your standard deduction is $6350.  But do note that although that reduces your income subject to Federal Income Tax, the entire net earnings is subject to self employment tax.

[Carl]

Understand the difference between the standard deduction and the self-exemption.

Every tax filer gets the standard deduction just for breathing - no matter what. For 2017 the standard deduction for a single tax filer is $6,350.

The self-exemption for 2017 is $4,050 and that's in addition to the standard deduction. If your parents qualify to claim you as a dependent on their tax return, then it doesn't matter if they actually claim you or not. If they just "qualify" to claim you, then you can not take the self-exemption. Doesn't matter if your parents actually claim you or not. But you still get the standard deduction.

In TurboTax, to indicate that you are not taking the self-exemption, you must select the box for "I can be claimed on someone else's return".

[Hal_Al]

As a dependent, your standard deduction for 2017 is limited to the greater of: (1) $1,050, or (2) your earned income plus $350; but no more than $6350.

[VolvoGirl]

You didn't finish reading or copying the rule.  See pub 501 page 24

https://www.irs.gov/pub/irs-pdf/p501.pdf

Here's a screen shot.  See the 3rd column.  It's for 2016 so it may be increased like $50 for 2017