Standard vs. itemized deduction confusion

Forum|Forum|3 years ago
March 15, 2023
3 replies
48 views

My 2022 TurboTax SW is asking if my daughter (a dependent student that worked in 2021, but AGI was < than std deduction) if she itemized in 2021. Going into the 2021 tax pdf, there is no Schedule A, but the amount in box A is an odd-ball number below the $12,550 (and above her AGI). Going into TurboTax 2021 it is unclear from all the prompts what was done. I'm guessing that she got a standard deduction that was limited to some amount below the actual standard deduction,... does this sound plausible???

For clarity, in the 'product' selection it is my 2021 TurboTax version (Premier).

Best answer by MarilynG

Yes, if your daughter filed a return in 2021 indicating she was 'a dependent' the Standard Deduction for a dependent is less than the $12,550 for a Single Non-Dependent.

For example, the Standard Deduction for a Dependent for 2022 is limited to the greater of: (1) $1,150, or (2) your earned income plus $400 (but the total can't be more than the basic standard deduction for your filing status).

Click this link for more info on Dependent Standard Deduction.

@CoArmstrong

MarilynGAnswer

Level 15

Yes, if your daughter filed a return in 2021 indicating she was 'a dependent' the Standard Deduction for a dependent is less than the $12,550 for a Single Non-Dependent.

Click this link for more info on Dependent Standard Deduction.

@CoArmstrong

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ee-ea

Alumni - Champ

Dependents – If you can be claimed as a dependent by another taxpayer, your standard deduction for 2021 is limited to either $1,100 or the dependent's earned income plus an additional $350, whichever figure is greater.

Opus 17

Level 15

Because a child's unearned income (interest, dividends and investments) can be taxed at the parent's rate (to keep parents from dodging taxes by putting investments in their children's names), a child's standard deduction is calculated differently. If their only income is earned from working, then their standard deduction is $12,900 or equal to their earned income, whichever is less. If they also have unearned income, it gets more complicated.

https://www.irs.gov/taxtopics/tc553