13.4 Standard Deduction for Dependents

If someone can claim you as a dependent for 2012 under the tests at 21.1, your standard deduction is determined under the following rules. You may elect to itemize deductions if these exceed the allowable standard deduction. If you are married and your spouse itemizes on a separate return, you must itemize (13.2).

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image Caution
Determine Dependency Status First
The reduced standard deduction rules apply to you if you may be claimed as a dependent on another tax return, such as by your parents. If you can be claimed as a dependent under the rules at 21.1, it does not matter if you are actually claimed as a dependent.
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Dependent under age 65 and not blind.

Your standard deduction is generally the greater of $950 or your earned income plus $300, but no more than the basic standard deduction for your filing status (13.1).

EXAMPLES
1. Susan, age 17, is claimed as a dependent by her parents. For 2012, she has earned income of $595 and interest income of $40. Her standard deduction is $950, the greater of $950 or $895, the total of her earned income ($595) and $300.
2. Assume that Susan’s earned income is $2,000 rather than $595. Her standard deduction for 2012 is $2,300, the greater of $950 or $2,300, the total of her earned income ($2,000) and $300.

Dependents age 65 or older or blind.

Your standard deduction consists of two parts. First, you can deduct the greater of $950 or your earned income plus $300, but no more than the basic standard deduction for your filing status (13.1). You then add $1,150 if you are married filing jointly or married filing separately, or $1,450 if single or head of household. Double the $1,150 or $1,450 amount if you are age 65 or older and also blind.

EXAMPLE
Jane Dell claims her widowed mother, Beth, who is age 67, as her dependent for 2012. For 2012, Beth has interest income of $400, wages of $2,000, and Social Security benefits of $10,000 that are exempt from tax under the rules discussed at 34.3. Beth’s standard deduction is $3,750: $2,300 (the greater of $950 or her wage income of $2,000 plus $300) plus $1,450, the additional deduction for a single person over age 65. Beth’s taxable income is zero. Although her gross income of $2,400 is below the filing threshold (see filing tests for dependents on page 4), she should file a tax return to obtain a refund of income tax withheld from her wages.

Worksheet 13-2 Standard Deduction for Dependents in 2012

1. Enter the larger of:
  $950, or
  Your earned income* in 2012 plus $300		 $ _________
2. Enter your basic standard deduction:
  Married filing jointly or qualifying widow(er)—$11,900
  Head of household—$8,700
  Single or married filing separately—$5,950		 _________
3. Enter the smaller of Line 1 or 2 _________
4. If you are age 65 or older or blind (13.4), enter:
  $1,450 if you are single or head of household
  $1,150 if you are married filing jointly or separately
  If both age 65 or older and blind, the $1,450 or $1,150
amount is doubled to $2,900 or $2,300, respectively.		 _________
5. Add Lines 3 and 4. This is your standard deduction for 2012. _________

*Earned income. Include pay for services and taxable scholarships (33.1). Include net earnings from self-employment and then subtract the deductible part of self-employment tax liability (45.3) when figuring earned income. However, if your gross income (earned and unearned) for 2012 is $3,800 or more, you may be claimed as a dependent only if you are the qualifying child of another taxpayer (21.1).

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18.118.31.11