Question

Stephanie is 12 years old and often assists neighbors on weekends by babysitting their children. Calculate the 2019 standard deduction Stephanie will claim under the following independent circumstances (assume that Stephanie’s parents will claim her as a dependent).

a. Stephanie reported $1,450 of earnings from her babysitting.

b. Stephanie reported $2,580 of earnings from her babysitting.

c. Stephanie reported $19,645 of earnings from her babysitting.

Answer 1

a. Stephanie reported $1,450 of earnings from her babysitting.

Answer : Stephanie can claim standard dedection of higher of below amount -

(1) $ 1100

(2) Sum of $ 350 plus Individual earned income ( not to exceed regular standard deduction amount ..ie $ 12200 )

= $ 350 + $ 1450 = $ 1800

so Stephanie can claim standard dedection of $ 1800 in this scenario.

b. Stephanie reported $2,580 of earnings from her babysitting.

Answer : Stephanie can claim standard dedection of higher of below amount -

(1) $ 1100

(2) Sum of $ 350 plus Individual earned income ( not to exceed regular standard deduction amount ..ie $ 12200 )

= $ 350 + $ 2850

= $ 2930

so Stephanie can claim standard dedection of $ 2930 in this scenario.

c. Stephanie reported $19,645 of earnings from her babysitting.

Answer : Stephanie can claim standard dedection of higher of below amount -

(1) $ 1100

(2) Sum of $ 350 plus Individual earned income ( not to exceed regular standard deduction amount ..ie $ 12200 )

= $ 350 + $ 19645

= $ 19995 is higher than $ 12200 so it is limited to $ 12200.

so Stephanie can claim standard dedection of $ 12200 in this scenario.