Taxpayers Who Can Be Claimed as Dependents
The standard deduction is generally lower for an individual who can be claimed as a dependent on another person's tax return. The deduction is generally limited to the greater of:
All of these rules are included on the standard deduction worksheet for dependents.
During the interview, verify how the taxpayer marked the check box for a dependent being claimed by another taxpayer.
Janet is single, 22, a full-time student, and not blind. Her parents claimed her as a dependent on their 2011 tax return. She has no itemized deductions, so she will take the standard deduction. She has interest income of $120, taxes withheld of $35, and wages of $780. Her standard deduction is $1,080 ($780 + $300).