I am being claimed as a dependent on my parent's return, however, Turbo Tax is allowing the full $12,000 standard deduction. Is this correct?

[Texas Roger · Accepted solution]

If you had $12,000 or more income, the $12,000 standard deduction is correct. For amounts less than $12,000, the standard deduction should be the amount of income plus $350. There is no longer a reduction in the amount of tax free income for being claimed as a dependent since the dependency exemption was eliminated for tax year 2018. 

[jlu1942]

Does this mean that I can get up to $12,000.00 income tax free even if my parents claim me as dependent? I am in college and made $22K during last summer. I understand that my parents can reap $2,500.00 of American Opportunity tax credit($2,000) and student credit($500) if I'm their dependent. I am wondering if I should file as individual, but upon reading your comment, I think we'll be much better off to be a dependent.
Thanks,

[Texas Roger]

If you meet the requirements to be claimed as a dependent by your parents,  you can't claim your own dependency. You must file a tax return and indicate that you can be claimed by someone else. As you indicated in your comment you will be eligible for up to $12,000 of standard deduction and your parents can claim the AOC of up to $2500 and the family credit of up to $500 on their tax return. If you had scholarship income that paid for other than qualified education expenses such as room and board, you must claim that income on your tax return.

[jlu1942]

Thank you so much!
I am working on my daughter's return and this is a pleasant surprise. So she doesn't really have any choice in this regard? (just check the box( "Someone can claim you as a dependent" ). She worked for Goldman Sachs for financial engineering and has no knowledge about tax issues.
Thank you again for your help!

If I have question about NY state return, do I ask on this same forum?

[Texas Roger]

I suggest you start a new question since I have no knowledge about NY state taxes.

[jlu1942]

I read your answer about parent claim dependent, so for 2019, when my daughter graduate and start with GD she'll make more than we do(we're retired), but I'll still meet the requirement(because we are paying for her last year's tuition) can she file her own and we don't claim her?
Thanks

[Texas Roger]

Does GD mean graduate degree? If she earns enough in 2019 to provide more than half her own support, you can't claim her. Also if she is not still under the age of 24 at the end of 2019, you can't claim her.

[jlu1942]

Sorry, she was invited back to Goldman Sachs for permanent employment and committed. It's GS not GD.
Okay so I think it's clear if her W2 for 2019 showing more than the tuition we paid, we can't claim her as dependent.
Thank you so much again!