topic Do I pay my standard deduction for 2020 which is $2,750 out of my pocket? in Deductions & credits

Do I pay my standard deduction for 2020 which is $2,750 out of my pocket?

--mateshko-- — Wed, 17 Mar 2021 17:05:32 GMT

Re: Do I pay my standard deduction for 2020 which is $2,750 out of my pocket?

VolvoGirl — Wed, 17 Mar 2021 17:09:25 GMT

What??? The Standard Deduction is a good thing. Everyone gets a Standard Deduction. It is subtracted from your income before you pay tax. So you get taxed on a lower amount. Are you a dependent? Because the Standard Deduction is 12,400 or it can be less for dependents. It means the first 12,400 or in your case 2,750 of income is tax free.

Re: Do I pay my standard deduction for 2020 which is $2,750 out of my pocket?

xmasbaby0 — Wed, 17 Mar 2021 17:11:40 GMT

What? No you do not pay your standard deduction. Your standard deduction lowers the amount of income you have to pay tax on. If you owe any federal tax you will see if on line 37 of your Form 1040.

Explain Standard Deduction—What is it?

https://ttlc.intuit.com/community/credits-and-deductions/help/what-s-my-standard-deduction/00/26370

Are you being claimed as someone else's dependent? That would be the only reason your standard deduction would be shown as that amount.

The standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,100 or the sum of $350 and the individual’s earned income (not to exceed the regular standard deduction amount).