Question

Jolene is age 19, and a full-time student. She is claimed as a dependent on her father’s return. She had a summer job in 2020 and earned $7,800. What will Jolene’s standard deduction be?

a. $1,100

b. $12,200

c. $350

d. $8,150

Answer 1

Jolene's standard deduction will be $8,150 for the year 2020 since she is a dependent and her earned income ($7,800) plus $350 is less than the basic standard deduction for an individual but more than the minimum for dependents.

Step-by-step explanation:

Jolene's standard deduction for the year 2020 will be $12,400. This is because for the tax year 2020, the standard deduction for a single individual under the age of 65 who is not a dependent is $12,400. However, because Jolene is a dependent, her standard deduction cannot exceed the larger of $1,100 or her earned income ($7,800) plus $350, up to the standard deduction amount.

Therefore, in Jolene's case, the calculation would be her earned income of $7,800 plus $350, which equals $8,150, which is less than the standard standalone deduction of $12,400. Considering the rules for dependents, the greater of $1,100 or $8,150 applies. Thus, Jolene's standard deduction is $8,150.