Final answer:
The standard deduction for a dependent is the greater of $1,100 or the individual's earned income plus $350, not to exceed the standard deduction for single filers, which can vary year to year.
Step-by-step explanation:
The standard deduction for a person who is claimed as a dependent on someone else's tax return is limited. Generally, the standard deduction for a dependent is the greater of $1,100 or the individual's earned income plus $350 for the tax year 2020, not to exceed the regular standard deduction amount applicable to single filers. However, these figures can change from year to year, so it's always best to consult the most current IRS guidelines or tax tables.
Understanding these fundamental concepts, such as the standard deduction and how it is calculated for dependents, is essential, whether you are reviewing economic policy or preparing to file your own taxes. Remember that taxable income is calculated as your adjusted gross income minus any deductions and exemptions you are eligible to take.