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Standard Deduction for Dependents
The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the greater of:
The individual's earned income for the year plus $350 (but not more than the regular standard deduction amount, generally $12,000).
Reading the NY Times article - it seemed that the non tuition scholarship amount ( for us $7465) was going to be taxed at 37%, and I've read this thread completely 3 times over, and I'm not clear what's taxable when a standard deduction is considered.
Does this mean that the 13465 income -12000 standard deduction = 1465 is what is taxable? Or is the 13465 the taxable amount?
Also most scholarships are paid out by the semester and since there's only one semester in the first tax year your student is in college they'll likely be fine for taxes the first year.