Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
edanhi
New Member

Is a deduction what they are taking out of my return? my deduction is bigger than my actual return

 
1 Best answer

Accepted Solutions
IsabellaG
Expert Alumni

Is a deduction what they are taking out of my return? my deduction is bigger than my actual return

Are you asking if a tax deduction reduces your refund? 

A tax deduction reduces your taxable income, which lowers your total tax. So a bigger tax deduction would result in a bigger refund, but not dollar for dollar, so your deduction could definitely be bigger than your refund.

If that's not what you mean, comment back here so I can help.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
IsabellaG
Expert Alumni

Is a deduction what they are taking out of my return? my deduction is bigger than my actual return

Are you asking if a tax deduction reduces your refund? 

A tax deduction reduces your taxable income, which lowers your total tax. So a bigger tax deduction would result in a bigger refund, but not dollar for dollar, so your deduction could definitely be bigger than your refund.

If that's not what you mean, comment back here so I can help.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v