J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

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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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 ...