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Since this is a deduction and not a credit, your refund only changes to the extent of the tax you would have paid on that amount of income. Deductions only lower your taxable income, meaning you pay tax on less income. They do not provide a refund for the amount you deduct, but only for the amount of tax you would pay on your income if you did not have that deduction.
For, example, if your tax rate is 20%, and you had 10,000 in taxable income, a deduction of !,000 would reduce your taxable income to $9,000 and save you $200 in tax.
Since this is a deduction and not a credit, your refund only changes to the extent of the tax you would have paid on that amount of income. Deductions only lower your taxable income, meaning you pay tax on less income. They do not provide a refund for the amount you deduct, but only for the amount of tax you would pay on your income if you did not have that deduction.
For, example, if your tax rate is 20%, and you had 10,000 in taxable income, a deduction of !,000 would reduce your taxable income to $9,000 and save you $200 in tax.
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