Internal Revenue Service United States Department of the Treasury
Module 7: Standard Deduction

Page 5 of 7

 

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.
Page 2 of Irene Proudfoot's form 1040

 

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