2001 Tax Help Archives

 Publication 929 2001 Tax Year

### Standard Deduction

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This is archived information that pertains only to the 2001 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the larger of:

1. \$750, or
2. The individual's earned income plus \$250, but not more than the regular standard deduction (generally \$4,550).

However, the standard deduction for a dependent who is age 65 or older or blind is higher.

Certain dependents cannot claim any standard deduction. See Standard Deduction of Zero, later.

Table 2. Use Table 2 above to figure the dependent's standard deduction.

Table 2. Standard Deduction Worksheet for Dependents

Example 1. Michael is single, age 15, and not blind. His parents can claim him as a dependent on their tax return. He has taxable interest income of \$800 and wages of \$150. He enters \$400 (his earned income plus \$250) on line 1 of Table 2. On line 3, he enters \$750, the larger of \$400 or \$750. Michael enters \$4,550 on line 4. On line 5a, he enters \$750, the smaller of \$750 or \$4,550. His standard deduction is \$750.

Example 2. Judy, a full-time student, is single, age 22, and not blind. Her parents can claim her as a dependent on their tax return. She has dividend income of \$275 and wages of \$2,500. She enters \$2,750 (her earned income plus \$250) on line 1 of Table 2. On line 3, she enters \$2,750, the larger of \$2,750 or \$750. She enters \$4,550 on line 4. On line 5a, she enters \$2,750 (the smaller of \$2,750 or \$4,550) as her standard deduction.

Example 3. Amy, who is single, is claimed as a dependent on her parents' tax return. She is 18 and blind. She has taxable interest income of \$1,000 and wages of \$2,000. She enters \$2,250 (her earned income plus \$250) on line 1 of Table 2. She enters \$2,250 (the larger of \$2,250 or \$750) on line 3, \$4,550 on line 4, and \$2,250 (the smaller of \$2,250 or \$4,550) on line 5a. Because Amy is blind, she checks the box for blindness and enters "1" in box c at the top of Table 2. She enters \$1,100 (the number in box c times \$1,100) on line 5b . Her standard deduction on line 5c is \$3,350 (\$2,250 + \$1,100).

#### Standard Deduction of Zero

The standard deduction for the following dependents is zero.

1. A married dependent filing a separate return whose spouse itemizes deductions.
2. A dependent who files a return for a period of less than 12 months due to a change in his or her annual accounting period.
3. A nonresident or dual-status alien dependent, unless the dependent is married to a U.S. citizen or resident at the end of the year and chooses to be treated as a U.S. resident for the year. See Publication 519, U.S. Tax Guide for Aliens, for information on making this choice.

Example. Jennifer, who is a dependent of her parents, is entitled to file a joint return with her husband. However, her husband elects to file a separate return and itemize his deductions. Because he itemizes, Jennifer's standard deduction on her return is zero. She can, however, itemize any of her allowable deductions.