Page 7

to a tax liability unless authorized to do so by the law of the state in which the child lives. IRS notice. If you or the child receives a notice from the IRS concerning the child's return or tax liability, you should immediately inform the IRS that the notice con- cerns a child. The notice will show who to contact. The IRS will try to resolve the matter with the parent(s) or guardian(s) of the child consistent with their authority. Child's earnings. For federal income tax purposes, amounts a child earns by performing services are inclu- ded in the gross income of the child and not the gross in- come of the parent. This is true even if, under state law, the parent has the right to the earnings and may actually have received them. If the child doesn’t pay the tax due on this income, the parent may be liable for the tax. Child's expenses. Deductions for payments that are made out of a child's earnings are the child's, even if the payments are made by the parent. Example. You made payments on your child's behalf that are deductible as a business expense and a charita- ble contribution. You made the payments out of your child's earnings. These items can be deducted only on the child's return. Standard Deduction The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the larger of: 1. $1,100; or 2. The individual's earned income plus $350, but not more than the regular standard deduction (generally $12,550). However, the standard deduction may be higher for a de- pendent who: • Is 65 or older, or • Is blind. Certain dependents can’t claim any standard deduc- tion. See Standard Deduction of Zero, later. Worksheet 1. Use Worksheet 1 to figure the dependent's standard deduction. If you don’t itemize your deductions in 2021, you may qualify to take a charitable deduction of cash contributions of up to $300 ($600 in the case of a joint return). For more information see Pub. 526, Charita- ble Contributions. TIP Worksheet 1. Standard Deduction Worksheet for Dependents Keep for Your Records Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent. If you were 65 or older and/or blind, check the correct number of boxes below. Put the total number of boxes checked in box c and go to line 1. a. You 65 or older Blind

b. Your spouse, if claiming spouse's exemption 65 or older Blind c. Total boxes checked

1. Enter your earned income* plus $350. If none, enter -0-. 1.

2. Minimum amount. 2. $1,100 3. Compare lines 1 and 2. Enter the larger of the two amounts here. 3.

4. Enter on line 4 the amount shown below for your filing status. • Single or Married filing separately—$12,550 • Married filing jointly—$25,100 • Head of household—$18,800 4.

5. Standard deduction. a. Compare lines 3 and 4. Enter the smaller amount here. If under 65 and not blind, stop here. This is your standard deduction. Otherwise, go on to line 5b. 5a.

b. If 65 or older or blind, multiply $1,700 ($1,350 if married) by the number in box c above. Enter the result here. 5b.

c. Add lines 5a and 5b. This is your standard deduction for 2021. 5c.

* Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any amount received as a scholarship that you must include in income. Publication 929 (2021) Page 7