I am filing for my daughter who is a college student, she only has some summer intern income of $8,580.
In TT, at the end of the deduction and credit section, the summary shows
standard deduction for her in 2022 is $12,600, and for 2023 is $8,980
Why standard deduction is only $8,980 for her?
Also I would enter $3000 1099-Q from Charles Schwab for her coverdell eduction IRA for her since it has her name on it, entering these doesn't change the standard deduction which is still only $8,980 for single filer.
I see the following on TT help,
Standard Deduction Amounts for 2023
If your filing status is:
Single
Your standard deduction is $13,850.
The standard deduction for a dependent is not the full $13,850. It is the greater of $1250 or her earned income plus $400.
$8580 + 400 = $8980.
So, most of her unearned income (the taxable amount of the 1099-Q) gets taxed.
Thanks so much @Hal_Al
You helped last year too with my other question, very much appreciated!
So, do you need help if figuring out how much of the $3000 on the 1099-Q is taxable, or did we do that last year?
thanks for asking, the last year tax year 2022 question was resolved, with you help.
I do have a question to the tax year 2023 $3000,
I would enter $3000 1099-Q from Charles Schwab for her coverdell eduction IRA for her return since it has her name on it, I think this is better than if it is under my SSN, otherwise I need to enter it on my return and I dont have enough expense on my return to cover it. I may need to enter a new post so this does not deviate form the topic too much and copy you, if that is better. Thanks again!