Can you clarify. What were the deductions and amounts you entered, and what is your fling status (Single, Married Filing Joint, etc.)
It falls under the deduction and credit section. I added mortgage interest, property taxes, and car registration fees. This was a single filling. I owed a balance of $700 before adding all the deductions in the app. They said that I qualified for up to $12000 of tax deductions. But when I try to finalize it it still shows the $700. So I’m just confused as to why I owe money still
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