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Deductions & credits
For a single person, the Std Deduction is applied automatically......that amount is 12,950 and is already being used before you ever get to the deductions section.
IF the deductions you added don't exceed 12,950, then you get to keep the 12,950.
IF you find more deductions to enter, then once they exceed 12950, then the excess over 12950 will start to be used to reduce taxable income
(Except for out-of-pocket Medical deductions....those must exceed 7.5% of your AGI before they start to be used)
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And state income taxes paid.....Plus property taxes paid....when used as a Federal deduction, that total is capped at $10,000
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
January 25, 2023
3:42 AM