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I'm claimed as dependent on parent taxes, so my max deduction should be greater of $1150 or EI+$400, but TT is giving me full $11,252. How do I change it to correct amt.?

IRS Topic No. 551 details max standard deduction for filers claimed as a dependent. TT does not seem to be picking up on this even though I checked the box that someone else can claim me as a dependent.
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3 Replies
JohnB5677
Employee Tax Expert

I'm claimed as dependent on parent taxes, so my max deduction should be greater of $1150 or EI+$400, but TT is giving me full $11,252. How do I change it to correct amt.?

You quoted the right publication, but you didn't understand it properly.

If you can be claimed as a dependent by another taxpayer, your standard deduction for 2022 is limited to the 

  1. Greater of $1,150, 
    1. You earned more than $1,150 so that doesn't apply.
  2.  The next consideration is your earned income plus $400. 
    1. I expect that you earned $10,852. That plus $400 is $11,252.
  3. However, you could get the regular standard deduction, but the total can't be more than the basic standard deduction for your filing status.
    1. The standard deduction for a single person is $12,950.
    2. This is larger than the $11,252, so you get a deduction of $11,252.

 

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I'm claimed as dependent on parent taxes, so my max deduction should be greater of $1150 or EI+$400, but TT is giving me full $11,252. How do I change it to correct amt.?

It means the minimum is $1,150.   But you are getting the greater amount of Earned Income+400.

I'm claimed as dependent on parent taxes, so my max deduction should be greater of $1150 or EI+$400, but TT is giving me full $11,252. How do I change it to correct amt.?

I figured it out. My earned income was just $3300 plus $400, then it added in excess grant money from a 1098-T to get it to $11,252. Thank you for your assistance. 

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