What is the standard deduction amount for my dependent college student?
Hey all, need some quick tax advice. My daughter is a 19-year-old sophomore at university and worked part-time last year. Her W-2 shows she made about $8,100 in 2024. My husband and I are claiming her as a dependent on our tax return, but she wants to file her own taxes too. I'm confused about what standard deduction she can claim. Does she still get the full standard deduction of $14,600? Or is there a different amount for dependents? I've heard conflicting things and don't want her to mess up her first real tax filing. Thanks for any help!
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Anastasia Kuznetsov
The standard deduction works differently for dependents! When someone can be claimed as a dependent on another person's return, they don't get the full standard deduction that independent filers get. For 2024, a dependent's standard deduction is limited to either $1,250 or their earned income plus $400, whichever is MORE, but cannot exceed the regular standard deduction amount of $14,600. Since your daughter earned $8,100, her standard deduction would be $8,500 ($8,100 + $400). This is actually a good thing for her situation. Since her income is only $8,100 and her standard deduction would be $8,500, she wouldn't owe any federal income tax because her taxable income would be zero. But filing might still be beneficial if she had any federal taxes withheld from her paychecks, as she could get that money refunded.
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Diego Fernández
•Thanks so much for explaining! So just to make sure I understand - she'll get a standard deduction of $8,500 (her income plus $400), not the full $14,600 that independent adults get? And if she had $450 in federal taxes withheld from her paychecks throughout the year, she should definitely file to get that back, right?
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Anastasia Kuznetsov
•That's exactly right! She gets $8,500 as her standard deduction, not the full $14,600, because she's a dependent. Absolutely she should file if she had $450 withheld! Since her taxable income would be zero after applying her standard deduction, she would get all of that $450 back as a refund. It's basically free money sitting there waiting for her to claim.
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Sean Fitzgerald
I went through this exact situation with my son last year and was so confused until I found taxr.ai (https://taxr.ai). They analyzed his W-2 and immediately showed me that dependent standard deduction calculation - it's either $1,250 or their earned income + $400, whichever is higher. The tool explained that since my son made about $7,500, his standard deduction was $7,900, not the full standard amount. Plus it showed exactly how much he'd get back! Super helpful because the rules for dependents are different and I would have calculated it wrong.
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Zara Khan
•How accurate is this service really? I've been using TurboTax for years but they always seem to miss little details for my college kids' returns.
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MoonlightSonata
•Does it work for more complicated situations? My daughter has scholarship income too, and I never know how to handle that part with her being a dependent.
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Sean Fitzgerald
•It's actually surprisingly accurate - I double-checked everything with my accountant friend and she confirmed all the calculations were spot on. They caught a credit my son was eligible for that I had no idea about. For scholarship income, yes it handles that too! It asks specific questions about qualified education expenses versus room and board to determine what portion is taxable. That's actually what convinced me to use it - the clear explanation of how scholarships affect dependent returns.
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Zara Khan
Just wanted to update after trying taxr.ai that someone mentioned above! I uploaded my daughter's W-2 and college 1098-T and wow - it was so much clearer than TurboTax! It showed her dependent standard deduction calculation step by step and explained why she was getting money back even though we claim her. Also caught that some of her scholarship was actually taxable since it exceeded tuition (was used for housing). TurboTax never made that clear to me before. Already finished her return and she's getting back $376 that I might have missed. Definitely easier than trying to figure out all these dependent student rules myself!
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Mateo Gonzalez
If you need to talk to the IRS about dependent deductions (which I did last year when we had this weird situation with my stepson), try Claimyr (https://claimyr.com). I spent HOURS trying to get through to the IRS last February when we had questions about his filing status. Claimyr got me connected to an actual IRS agent in about 20 minutes when I had been trying for days. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent walked me through the exact calculation for dependent standard deductions and confirmed what we needed to do with his financial aid situation. Saved me so much headache during tax season!
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Diego Fernández
•How does this actually work? I've tried calling the IRS before and just gave up after being on hold forever.
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Nia Williams
•Yeah right. Nothing gets you through to the IRS faster. They're designed to be unreachable. Sounds like a scam to me.
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Mateo Gonzalez
•It basically uses technology to navigate the IRS phone tree and wait on hold for you. Then when they get an agent, you get a call connecting you directly. I was skeptical too until I tried it - no more listening to that awful hold music for hours! I totally get the skepticism. I felt the same way! But it works because they're basically just doing the waiting for you. They don't ask for any personal tax info or anything sketchy. They just call the IRS, navigate the system, wait on hold, and then connect you once a human answers. I was connected in about 15 minutes when I had been trying for days on my own.
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Nia Williams
I have to eat my words about Claimyr. After posting that skeptical comment, I was still stuck with questions about my son's dependent status that online guides weren't answering clearly. Decided to try it as a last resort. Got connected to an IRS agent in 17 minutes when I'd tried calling 3 times before with no luck. The agent confirmed exactly what my son's standard deduction should be as a dependent and cleared up confusion about his 1099 income from a small side gig. Now I know exactly how to file for both of us without worrying about an audit. Sometimes admitting you're wrong feels pretty good!
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Luca Ricci
One thing to watch for - if your daughter has any unearned income (interest, dividends, etc.) over $1,250, the calculation gets more complicated. The standard deduction for dependents with unearned income is the greater of: 1. $1,250, or 2. Earned income + $400, up to the full standard deduction amount And remember she'll still need to file if federal income tax was withheld and she wants it refunded, even if she's below the filing requirement threshold!
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Aisha Mohammed
•Wait, does investment income from a UTMA account count as unearned income for a dependent? My son has one of those accounts his grandparents set up.
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Luca Ricci
•Yes, any income generated by that UTMA account (interest, dividends, capital gains) counts as unearned income on your son's tax return. That's actually one of the most common sources of unearned income for dependents. If it's over $1,250, you'll need to apply the more complex calculation for his standard deduction, and he may have to pay tax on some of that investment income depending on the total amount. Some of it might be subject to the "kiddie tax" where it's taxed at the parents' rate.
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Ethan Campbell
Don't forget to check if your daughter qualifies for the American Opportunity Tax Credit for college expenses! Even if you claim her as a dependent, someone gets this credit - either you or her, but not both. Usually makes more sense for the parents to claim it since they're in a higher tax bracket and can get more benefit. The credit is worth up to $2,500 per eligible student!
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Diego Fernández
•We're definitely planning to claim the AOTC on our return since we paid most of her tuition. But what about her health insurance? She's on our family plan - does that affect anything on her return or ours?
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Keisha Johnson
•Since she's on your family health plan and you're claiming her as a dependent, the health insurance doesn't create any additional tax implications for her individual return. You handle all the health insurance reporting on your family return. The important thing is coordinating the education credits properly. Since you're claiming her as a dependent AND taking the AOTC, make sure she doesn't accidentally claim any education credits on her own return - that would trigger issues with the IRS. Her return should just focus on getting back any withheld taxes based on her standard deduction calculation.
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