How do deductions work

newcarsmell11 — Tue, 31 Mar 2020 14:16:18 GMT

Re: How do deductions work

AnnetteB6 — Tue, 31 Mar 2020 14:38:37 GMT

Deductions are subtracted from your income to determine your taxable income. Then the income tax is based on your taxable income. So, the more deductions you have, the less taxable income.

Every taxpayer is allowed a standard deduction amount that is subtracted from income that is based on the filing status of the return (Single, Married Filing Joint, Head of Household, etc.)

You can also enter information such as mortgage interest, property taxes, medical expenses, charitable donations, and others in order to try to have enough Itemized Deductions to be larger than your Standard Deduction. This would reduce your taxable income even more.

To learn more:

What's my standard deduction for 2019?

How does the Standard Deduction differ from itemized deductions?

@newcarsmell11

topic How do deductions work in Deductions & credits

How do deductions work

Re: How do deductions work