Question

Julie Jefferson is a 16 year old dependent high school student. Julie earns $5,000 from a part-time job. Julie's applicable standard deduction for 2020 that may be taken on her own return is ___________.

Answer 1

Answer: d. $5,350

Explanation:

According to 2020 tax laws, a dependent minor such as Julie Jefferson here can claim a standard deduction that is the greater of:

a. $1,100 or,

b. earned income + $350 so long as it does not exceed $12,400.

Julie's applicable standard deduction is therefore:

= 5,000 + 350

= $5,350

This is greater than $1,100 and so is her applicable standard deduction.