Cesare is 16 years old and works throughout the year at a local coffee shop.

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.