petersr22
New Member

Why aren't my deductibles factored?

I added $1000s worth of deductibles including owning a home/charitable donations, etc. but it did not affect what I owed at all.  How are those items factored?

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Deductions such as medical expenses, charitable contributions, mortgage interest, property taxes, state and local income or sales taxes and others are what is known as “itemized deductions”.  You can see a more complete list of all these deductions, at least the most common, by looking at Schedule A of Form 1040.  They are used to reduce your taxable income.  The total of all your itemized deductions must exceed your standard deduction to be of any tax benefit.  Anyone filing a Federal income tax return (other than children under the age of 24 with unearned income) is entitled to the standard deduction.  The standard deduction for 2016 is $6,300 Single and $12,600 Married Filing Jointly.


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