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

Since Melissa is claimed as a dependent on her parents' tax return, her standard deduction is limited to the greater of $1,050 or her earned income plus $350, up to the regular standard deduction amount. In this case, Melissa's earned income is $2,000, so her standard deduction is $2,350 ($2,000 + $350). However, since this amount is less than the regular standard deduction for a single taxpayer ($12,200 in 2019), her standard deduction is limited to $1,200. Therefore, the correct answer is $2,350 - $1,150 = $2,300.

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