Standard deduction for dependent child

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awharvey
awharvey Member Newcomer

Our 22-year-old daughter, who still qualifies as our dependent, is using FreeTaxUSA to do her taxes. Although the completed form has the box "Eligible to be claimed as a dependent" checked, the form still says she qualifies for the full $13,800 standard deduction, but every source I can find seems to indicate that she should be eligible for no more than $1,250. What are we missing?

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  • TaxMorgan
    TaxMorgan FreeTaxUSA Agent
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    Hi awharvey!

    When an individual can be claimed as a dependent on another return their standard deduction is limited to the GREATER of $1,250 or the amount of their earned income plus $400 (up the the standard deduction amount for their filing status-$13,850 is the standard deduction for filing Single). This would mean that if a taxpayer claimed as a dependent had earned income of $6,000, their standard deduction would be $6,400. If the taxpayer had earned income less than $1,250, their standard deduction would be $1,250.

    You can read information from the IRS here.

    IRS link: https://www.irs.gov/taxtopics/tc551

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  • awharvey
    awharvey Member Newcomer
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    Oh, wow, I think I need to address my sleep deprivation! I totally got that turned around in my brain. Thanks for pointing that out!