Module 7: Standard Deduction
Review the tax and credits section of Irene Proudfoot's tax return. Irene is single and is claimed as a dependent on her parents' tax return. She is 18 years old. She had interest income of $400 and wages of $4,350.
- The adjusted gross income is $4,750 ($400 + $4,350).
- The standard deduction is $4,700 (earned income of $4,350 + $350).
- Irene cannot claim an exemption for herself because she is claimed as a dependent on her parents' return.
- Taxable income is $50.