Melissa, age 16, is claimed as a dependent on her parents' tax return. This year, Melissa earned $2,000 from babysitting and $1,280 interest income from a savings account. Compute Melissa's standard deduction.

Question

Quizplus · Accepted Answer

Melissa's standard deduction is $1,100 (the minimum amount for a dependent) plus $2,350 (the greater of her earned income of $2,000 or $350 + $1,000, which is the sum of $350 plus the basic standard deduction of $1,000 for a dependent with no earned income). Therefore, her standard deduction is $3,450.

Melissa, Age 16, Is Claimed as a Dependent on Her