Katrina,age 16,is claimed as a dependent by her parents.During 2011,she earned $5,600 as a checker at a grocery store.Her standard deduction is $5,900 ($5,600 earned income + $300).

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As per the IRS rules for the year 2011, the standard deduction for a dependent with earned income was limited to the greater of $950 or earned income + $300, not to exceed the regular standard deduction amount of $5,800. Therefore, Katrina's standard deduction would be limited to $5,500 ($5,600 + $300 - $950) rather than $5,900.

Katrina,age 16,is Claimed as a Dependent by Her Parents