Debby, age 18, is claimed as a dependent by her mother. During 2017, she earned $1,100 in interest income on a savings account. Debby's standard deduction is $1,450 ($1,100 + $350).

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If Debby's mother claimed her as a dependent, Debby cannot claim her own personal exemption and her standard deduction is limited to the greater of $1,050 or her earned income plus $350, which in this case is $1,450. Therefore, her interest income of $1,100 would be fully taxable.

Debby, Age 18, Is Claimed as a Dependent by Her