What is the standard deduction limit for an individual who can be claimed as a dependent?

The standard deduction limit for an individual who can be claimed as a dependent is $1,150 or earned income plus $400. This means that if a dependent's earned income is less than $1,150, they can take the minimum deduction amount of $1,150. On the other hand, if their earned income exceeds $1,150, they can add $400 to their earned income to determine their total allowable standard deduction.

This structure is designed to provide a base level of deduction for dependents while also allowing for an increase based on their earned income. The underlying purpose is to ensure that even those who are dependents can benefit from a standard deduction that helps to reduce their taxable income. Thus, option that states the correct amount reflects both the base deduction and the incremental benefit based on earned income, aligning perfectly with the IRS regulations on standard deductions for dependents.