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Level 1
June 3, 2019
Question

Question about Standard Deduction

  • June 3, 2019
  • 4 replies
  • 19 views

How do I still owe money to the IRS after withholding when the standard deduction went from $6,350 in 2017 to $12,000 in 2018?

4 replies

DanielV01
Level 15
June 3, 2019
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Alumni - Champ
June 3, 2019
Alumni - Champ
June 3, 2019
Well, there is no more $4,050 Personal Exemption.
$6350 + 4050 = $10,400 in 2017. This has been replaced by $12,000 in 2018.
Hal_Al
Level 15
Level 15
June 3, 2019

Although the standard deduction increased, the personal exemption was eliminated. Effectively the deduction before taxes was only increased by $1700.