Cesare is 16 years old and works throughout the year at a local coffee shop. This year, he made $9,200 at the coffee shop and earned $2,000 in interest income from his savings account. Assume that Cesare is claimed as a dependent on his parent’s tax return. What is Cesare’s standard deduction for the year?

For tax year 2022, the standard deduction for a dependent individual who is claimed on someone else’s tax return is the greater of:

- $1,150, or
- The individual’s earned income plus $350, up to a maximum of $12,950.

In this case, Cesare’s earned income is $9,200 and he has no other income, so his standard deduction would be:

$1,150 (minimum) or $9,550 (earned income + $350, capped at $12,950 maximum)

Since his earned income plus $350 is less than the maximum of $12,950, his standard deduction is the greater of $1,150 or $9,550, which is $9,550.

Therefore, Cesare’s standard deduction for the year is $9,550.