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

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As a dependent, Melissa's standard deduction is the greater of $1,100 or her earned income plus $350, up to a maximum of $12,400 for 2020. Melissa's earned income is $2,000, so her standard deduction would be $2,350 ($1,100 + $2,000 + $350).

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