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masonparent
January 28, 2024
Solved

Why standard deduction is only $8,980 for single filer?

  • January 28, 2024
  • 1 reply
  • 0 views

I am filing for my daughter who is a college student, she only has some summer intern income of $8,580. 

In TT, at the end of the deduction and credit section, the summary shows

 

standard deduction for her in 2022 is $12,600, and for 2023 is $8,980

 

Why standard deduction is only $8,980 for her?

 

Also I would enter $3000 1099-Q from Charles Schwab for her coverdell eduction IRA for her since it has her name on it, entering these doesn't change the standard deduction which is still only $8,980 for single filer.

 

I see the following on TT help,

 

Standard Deduction Amounts for 2023

If your filing status is:

Single
Your standard deduction is $13,850. 

    Best answer by Hal_Al

    The standard deduction for a dependent is not the full $13,850.  It is the greater of $1250 or her earned income plus $400. 

     

    $8580 + 400 = $8980. 

     

    So, most of her unearned income (the taxable amount of the 1099-Q) gets taxed. 

    1 reply

    Hal_Al
    Hal_AlAnswer
    Employee
    January 28, 2024

    The standard deduction for a dependent is not the full $13,850.  It is the greater of $1250 or her earned income plus $400. 

     

    $8580 + 400 = $8980. 

     

    So, most of her unearned income (the taxable amount of the 1099-Q) gets taxed. 

      M
      masonparentAuthor
      January 28, 2024

      Thanks so much @Hal_Al 

      You helped last year too with my other question, very much appreciated!

      Hal_Al
      Hal_Al
      Employee
      January 28, 2024

      So, do you need help if figuring out how much of the $3000 on the 1099-Q is taxable, or did we do that last year?

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