The IRS.gov website says that the standard deduction for a dependent is "The individual's earned income for the year plus $450". For some reason Turbotax comes up with a different number that does not make sense. Can I get a refund on my Turbotax purchase? What value is this software if it does the math wrong? Now I have to fill the forms by hand.
Can you please clarify what standard deduction you are receiving? Per IRS: "If you can be claimed as a dependent by another taxpayer, your standard deduction for 2024 is limited to the greater of: (1) $1,300, or (2) your earned income plus $450 (but the total can't be more than the basic standard deduction for your filing status)."
[Edited 04/10/25 | 6:15 pm PST]
No that is wrong.
The IRS says that is should be the greater of $1300 or $(Earned Income)+$450.
You're right- can you clarify what standard deduction you are receiving and what you are expecting?
The 2024 Standard Deduction for an individual for whom an exemption can be claimed on another person's tax return is limited to the greater of:
…..$1,300 or
…..Your earned income for the year + $450 (but not more than 14,600)
So you would get a minimum of $1,300
What number does Turbo Tax have? No one else has posted that it is wrong. What kind of income does the dependent have? W2 or 1099NEC self employment?
See Table 8 Standard Deduction worksheet for Dependents on Page 26
https://www.irs.gov/pub/irs-pdf/p501.pdf
Or the 1040 worksheet on page 34
After chatting with Grok, which nails it every time, looks like this was a false alarm. Some income of the child was from a one-time gig, not a business, so not earned income, so the standard deduction calculation does not include it, and part of it ends up being taxable. Turbotax is fine. Thank you for the quick help.