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mjensrud21
New Member

Standard deduction

Do I pay the Standard Deduction or do I get that money?
1 Best answer

Accepted Solutions
StacyG
New Member

Standard deduction

You do not pay deductions and it is not money you get. Deductions reduce the amount of taxable income you owe taxes on.

For example:

  • The standard deduction for a single person is $6300
  • If I made $25000 in 2015, and took the standard deduction
  • I owe taxes on $18700 (25000-6300)

So by reducing the amount you are taxed on, you will (typically) receive a bigger refund or owe less taxes.

View solution in original post

1 Reply
StacyG
New Member

Standard deduction

You do not pay deductions and it is not money you get. Deductions reduce the amount of taxable income you owe taxes on.

For example:

  • The standard deduction for a single person is $6300
  • If I made $25000 in 2015, and took the standard deduction
  • I owe taxes on $18700 (25000-6300)

So by reducing the amount you are taxed on, you will (typically) receive a bigger refund or owe less taxes.

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