Determine the amount of the standard deduction allowed for 2008in the following

Question

Determine the amount of the standard deduction allowed for 2008in the following independent situations. In each case, assume thetaxpayer is claimed as another person’s dependent.

a)    Edward, age 18, has income as follows: $600interest from a certificate of deposit and $5,200 from repairingcars.

b)   Sarah, age 18, has income as follows: $400 cashdividends from a stock investment and $3,600 from handling a paperroute.

c)    Colin, age 16, has income as follows: $900interest on a bank savings account and $700 for painting aneighbor’s fence.

d)   Kara, age 15, has income as follows: $300 cashdividends from a stock investment and $500 from grooming pets.

e)    Kay, age 67, and a widow, has income asfollows: $1,200  from a bank savings accounts and $2,000from baby-sitting.

Explanation / Answer

$900, or

The individual's earned income for the year plus $300 (but notmore than the regular standard deduction amount, generally$5700)

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