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Dependent with earned income of $2,482 less mileage of $1,013 (total miles x .575). Expected std deduction of $1,819 but TT is showing $1,715. Which is correct?

 
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2 Replies

Dependent with earned income of $2,482 less mileage of $1,013 (total miles x .575). Expected std deduction of $1,819 but TT is showing $1,715. Which is correct?

What do you mean by "less mileage?"  Was Dependent reimbursed for mileage?  If he/she went to same location each time (even if self-employed), that is commuting and is not deductible.

Dependent with earned income of $2,482 less mileage of $1,013 (total miles x .575). Expected std deduction of $1,819 but TT is showing $1,715. Which is correct?

Ok  Your earned income to calculate the Standard Deduction is the Net Profit minus 1/2 the SE tax.

So  2,482 - 1,013 = 1,469 Net Profit

 

SE tax is 1,469 x .9235 x .153 = 207.56

207.56 / 2 = 103.78

 

1,469 - 103.78 = 1365.22 earned income

1365.22+350= 1,715.22 Standard Deduction

 

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