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deduction”2. Section 63(c)(5)3 limits petitioner’s basic
standard deduction4 to no more than $250 plus petitioner’s
“earned income”.
Parties’ Contentions
Both sides appear to claim adherence to the 1999 1040 Forms
and Instructions, which provide at page 30 the following relevant
worksheet:
2 The “additional standard deduction” relates to aged or
blind taxpayers, and does not apply in the instant case.
3 SEC. 63. TAXABLE INCOME DEFINED.
* * * * * * *
(c) Standard Deduction.--For purposes of this
subtitle--
* * * * * * *
(5) Limitation on basic standard deduction in the
case of certain dependents.--In the case of an
individual with respect to whom a deduction under
section 151 is allowable to another taxpayer for a
taxable year beginning in the calendar year in which
the individual’s taxable year begins, the basic
standard deduction applicable to such individual for
such individual’s taxable year shall not exceed the
greater of--
(A) $500 [adjusted to $700 for 1999, on
account of sec. 63(c)(4)], or
(B) the sum of $250 and such individual’s
earned income.
4 The parties evidently assume, and we do also, that
petitioner’s parents’ claim to petitioner’s personal exemption
deduction was allowable, and so the limitation of sec. 63(c)(5)
applies to petitioner for 1999.
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