Question

Charlize is a full-time student at UC Berkeley (born 1/31/2000,) She is on a scholarship of $8500 for tuition, books, and supplies + $1500 for room and board. Ben provides more than half of her support. In addition, Charlize earns $900 interest income from Bank of America and $1100 salary. She had $84 Social Security taxes withheld, Fed Tax Withholding of $102, and Ca. State Tax withholding of $55. Charlize paid $1300 in medical expenses in 2019.

Ben is her boyfriend, she lived with Ben the entire year. What is her filling status if Ben claims Charlize as a dependent? and what is her taxable income?

Answer 1

Ben and charlize are in relationship but they are not married , so Both Ben and Charlize will file there return on Single Status , although as per publication 501 (2019) ben can treat charlize as member of household as she lived with her through out the year and can claim her as dependent

In given case charlize is dependent on ben and will file return on single status as they are not married

Calculation of charlize Taxable income 2019

Particulars	Amount($)
Scholarship received on Books and periodicals		exempt As per publication 970 of Irs as scholarship recieved for books and tution fees
scholarship for Room & board	1500	Taxable As per Publication 970 of Irs
Interest Received	900
Salary	1100
Adjustable gross Income	3500	1500+900+1100
less standard deduction	-1450	explanation see#2
Taxable income	2050

#2 As per publication 501 of irs a person who is claimed as dependent by other person on his return will be allowed standard deduction greater of

a) 1100

or

b) Individual owned earnerd income +350 but less the $12200

In this case earned salary INcome = $1100

so standard deduction = 1100+350

=$1450

which is reater than $1100 but less tan 12200

so allowed deduction = $1450