Standard Deduction, Paid Federal Income Tax (FICA) , Fed'l Return Adj. $ Credits: All lessen Federal Tax Liability?

Forum|Forum|1 year ago
October 30, 2024
5 replies
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VolvoGirl

Level 15

The Standard Deduction is subtracted from your income before the tax is calculated. So yes it will reduce your tax a little.

But FICA (W2 box 4 & 6) doesn’t affect your tax return. If you have self employment 1099 income you pay/add FICA to the tax due. There are several different credits. Some will reduce your tax liability and some will also add to a refund you get.

TerraAuthor

Level 3

Isn't FICA W2 Fed'l Tax Withholding?

This W2 Fed'l Tax Withholding lessens one's Fed'l Tax Liability; right? As does 1040 Credits and Adjustments too.

VolvoGirl

Level 15

No. FICA is not the same as withholding. FICA is the Social Security & Medicare mandatory tax. It is on your W2 in boxes 4&6. You only get credit for federal income tax withholding in box 2 and box 17 for state withholding.

xmasbaby0

Level 15

You do not get anything back in your refund for Social Security or Medicare tax that was withheld (unless your SS with over-withheld)

Your standard deduction lowers your taxable income. The standard deduction makes some of your income “tax free.” It is not a refund. You will see your standard or itemized deduction amount on line 12 of your 2023 Form 1040.

2023 STANDARD DEDUCTION AMOUNTS

SINGLE $13,850 (65 or older/legally blind + $1850)

MARRIED FILING SEPARATELY $13,850 (65 or older/legally blind + $1500)

MARRIED FILING JOINTLY $27,700 (65+/legally blind) ) + $1500 per spouse

HEAD OF HOUSEHOLD $20,800 (65 or older/blind) + $1850)

2024 STANDARD DEDUCTION AMOUNTS

SINGLE $14,600 (65 or older/legally blind + $1850)

MARRIED FILING SEPARATELY $14,600 (65 or older/legally blind + $1500)

MARRIED FILING JOINTLY $29,200 (65 or older/legally blind + $1500)

HEAD OF HOUSEHOLD $21,900 (65 or older/legally blind + $1850)

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**