Standard vs. itemized deduction confusion

[CoArmstrong]

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).

[MarilynG1 · Accepted solution]

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 

[ee-ea]

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]

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