Limitation for Taxpayers Claimed as a Dependent on another Return For taxpayers claimed as a dependent on another return, the standard deduction claimed is limited to greaterof does Earned Income $350, or $1,050 Earned income is usually wages or self-employment income. Prevents parents from using children's standard deduction to shield interest and dividend income. f Example. L, who is single, is claimed as a dependent on his parents' tax return. He received $5,000 during the year in dividends, which was his only income. What is his standard deduction? $l,0S0