Debby,age 18,is claimed as a dependent by her mother.During 2010,she earned $1,100 in interest income on a savings account.Debby's standard deduction is $1,400 ($1,100 + $300).

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Debby's standard deduction cannot be equal to her earned interest income. Standard deduction is a set amount that can be subtracted from a taxpayer's income to reduce their taxable income. For 2010, an individual's standard deduction was $5,700, not $1,400. As a dependent, Debby's taxable income is calculated based on the larger of her earned income ($1,100) or her standard deduction ($5,700). Therefore, her taxable income would be $1,100 and she may not be required to file a tax return if she has no other income.

Debby,age 18,is Claimed as a Dependent by Her Mother