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March 16, 2024
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Only income was EE Bonds should I receive the benefit of the standard deduction on this in income

  • March 16, 2024
  • 3 replies
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Received very little W2 income.  The standard deduction only seems to be reducing my small  W2 income but not reducing my EE Bond income.  Is this correct?
Best answer by VolvoGirl

Are you a dependent?  The Standard Deduction for a dependent is limited to the greater of:

…..$1,250 or

…..Your earned income for the year + $400 (but not more than 13,850))

 

Earned income is only the W2.  So yes it could be correct.  

3 replies

March 16, 2024

Your EE Bond interest on Form 1099-INT is taxable on the Federal return but not your State return.

 

The Standard Deduction is based on your filing status and will be deducted from your Adjusted Gross Income, which includes all taxable interest shown on Line 2b of your tax return,

 

You can view your entire return or just your 1040 form before you e-file to see how your taxes were calculated and to preview the forms that TurboTax has prepared from your entries:

 

  1. Sign in to your TurboTax account
  2. Open or continue your return
  3. Select Tax Tools from the menu (if you don't see this, select the menu icon in the upper-left corner)
  4. With the Tax Tools menu open, you can then:
    • Preview your entire return: Select Print Center and then Print, save or preview this year's return (you may be asked to register or pay first if you choose this option)
    • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu

See this TurboTax tips article for more information on Form 1099-INT.

 

 

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VolvoGirl
VolvoGirlAnswer
Employee
March 16, 2024

Are you a dependent?  The Standard Deduction for a dependent is limited to the greater of:

…..$1,250 or

…..Your earned income for the year + $400 (but not more than 13,850))

 

Earned income is only the W2.  So yes it could be correct.  

Employee
March 16, 2024

The 2023 standard deduction for a dependent is $1,250 or your W-2 income plus $400, whichever is greater (not to exceed $13,850).