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Michael is single. His parents can claim him as a dependent on their 2019 income tax...

Michael is single. His parents can claim him as a dependent on their 2019 income tax return. He has interest income of $780 and wages of $150. He has no itemized deductions. What is Michael’s standard deduction?

A. $150B. $350C. $500D. $1,100

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Answer #1

If you can be claimed as a dependent by another taxpayer, your standard deduction for 2019 is limited to the greater of: (1) $1,100, or (2) your earned income plus $350 (but the total can't be more than the basic standard deduction for your filing status).

Earned income is $150 for wages. Interest Income is not counted as earned income.

hence greater of

a) $1100 or

b) $350+$150 = $500 whichever is higher

therefore $1100 is michael's standard deuction for 2019(option d)

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