Answer:
a) $1,200
b) $1,850
c) $6,200
Explanation:
First ,we are to determine Stephanie's claims based on different circumstances using the 2013 standard deduction
a) Reported $850 earnings from babysitting - claim 1,200
For 2013, the minimum standard deduction is $1,000, hence Stephanie is able to claim the greater of the following two: The minimum standard deduction of $1,000 or her earned income of $850 + $350 which is $1,200. Stephanie can claim $1,200
b) Reported $1500 - Claim $1,850
For 2013, the minimum standard deduction is $1,000, hence Stephanie is able to claim the greater of the following two: The minimum standard deduction of $1,000 or her earned income of $1500+ $350 which is $1,850. Stephanie can claim $1,850
c) reported $6,200 - Claim $6,200
For 2013, the minimum standard deduction is $1,000, hence Stephanie is able to claim the greater of the following two: The minimum standard deduction of $1,000 or her earned income of $6200+ $350 which is $6,550. However, she can only claim $6,200 because as a 2013 the maximum standard deduction for a single person which is her filing status is $6,200
