If I qualify for the standard tax reduction will I receive the given amount ? What exactly does it do ?

[AnthonyC · Accepted solution]

The standard deduction is a set amount that the IRS allows every taxpayer to offset against their income.  For 2016, the standard deduction amounts are:  $6,300 (single), $12600 (married filing jointly), or $9,300 (head of household).  Basically, the IRS lets you take this amount and subtract it from your income and (after any other deductions or credits you might have) you pay tax on the remaining amount of income.

Example:  You made $10,000 from a W2 job during the year.  Instead of paying taxes on the full $10,000, the IRS allows you to take a standard deduction of $6,300.  So, now you only have to pay tax on $3,700.  It doesn't "give" you the amount in your tax refund, but it will lead to a bigger tax refund because you are responsible for paying less tax.