Why is my standard tax deduction when filing only showing up as $4255 when it should be around 12k?

[jlloydwilk]

I am a single dependent in school without any dependents of my own. No house, car, or medical payments. If I understood the standard deduction breakdown TurboTax showed me, shouldn't I be getting a standard deduction of closer to 12 thousand?

[rjs · Accepted solution]

The $12,400 standard deduction is for someone who is not a dependent. For a dependent who is single, under 65, and not blind, the standard deduction is the greater of $1,100 or your earned income for the year plus $350 (but not more than $12,400).  So if your earned income is $3,905, your standard deduction is $3,905 + $350 = $4,255.

Note that it's based on your earned income, not total income. Earned income is basically income from working. However, for calculating the standard deduction for a dependent, taxable scholarship income is treated as earned income.

[jlloydwilk]

Thanks! That explains it. Earned income has been slow this year due to the movie theaters being closed. Appreciate the help, didn't know standard deduction depended on earned income. Kudos.