Claiming a dependent—or being one—can change the standard deduction amount. Dr. Friday explains the 2025 limits.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

What about dependents? Your standard deduction amount may differ if you can be claimed as a dependent on another person’s tax return.

In 2025, standard deduction for dependents is limited to $1,350 and the sum of $450 plus the dependent’s earned income, whichever is greater.

So this is gonna be big for some people that may be able to claim their children. Normally if they have small income that comes in on W-2s, we can wash it. A lot of times you don’t get that with this new standard.

So you’re going to need to revisit if you’re a small business owner paying your children. You have questions: 615-367-0819.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.