W is a full-time student and is claimed as a dependent by his parents.During 2012, he had tax-exempt interest income of $1,500 and wages of $2,300.He also had records supporting itemized deductions of $75.How much is W's standard deduction?
A)$2,600
B)$950
C)$2,300
D)$5,700

Question

Quizplus · Accepted Answer

For a dependent, the standard deduction in 2012 is the greater of $950 or the individual's earned income plus $300, up to the standard deduction limit for a single filer in 2012, which was $5,950. W's earned income is $2,300, so adding $300 gives $2,600, which is less than the limit for a single filer, making $2,600 the correct standard deduction amount.

W Is a Full-Time Student and Is Claimed as a Dependent