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New Member
posted Feb 14, 2024 10:28:32 AM

Why can't my daughter take standard deduction even if no taxes were withheld from her earnings?

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3 Replies
Level 15
Feb 14, 2024 10:33:55 AM

Is she your dependent?  Tax withholding doesn't matter.  

 

The Standard Deduction for an individual for whom an exemption can be claimed on another person's tax return is limited to the greater of:

…..$1,250 or

…..Your earned income for the year + $400 (but not more than 13,850)

 

So you would get a minimum of $1,250 to a max of 13,850.


See Table 8 Standard Deduction worksheet for Dependents on page 26
https://www.irs.gov/pub/irs-pdf/p501.pdf

Level 15
Feb 14, 2024 10:34:28 AM

The standard deduction is not a refund.  It is just an amount of income that is "tax free" for you.  is she a dependent?   

 

The standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,150 or the sum of $400 and the individual’s earned income (not to exceed the regular standard deduction amount).

 

 

 

Your standard deduction lowers your taxable income. The standard deduction makes some of your income “tax free.”  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2023 Form 1040.

 

 

 

 

2023 STANDARD DEDUCTION AMOUNTS

 

SINGLE $13,850  (65 or older/legally blind + $1850)

 

MARRIED FILING SEPARATELY $13,850  (65 or older/legally blind + $1500)

 

MARRIED FILING JOINTLY $27,700  (65+/legally blind) )  + $1500 per spouse

 

HEAD OF HOUSEHOLD  $20,800 (65 or older/blind)  + $1850)

 

 

 

 

Did she receive a W-2 or a 1099NEC?   If she received a 1099NEC, she needs to file a tax return if she earned $400 or more and pay self-employment tax for Social Security and Medicare.

Expert Alumni
Feb 14, 2024 10:34:31 AM

Your daughter can take a standard deduction, even if she is your dependent.

 

But, If you can be claimed as a dependent by another taxpayer, your standard deduction for 2023 is limited to the greater of: (1) $1,250, or (2) your earned income plus $400 (but the total can't be more than the basic standard deduction for your filing status).

 

So you may see a standard deduction which may be lower than $13,850.

 

Please read this IRS document for more information.