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New Member
posted Jun 1, 2019 12:07:55 AM

Standard deduction

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

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1 Best answer
New Member
Jun 1, 2019 12:07:57 AM

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.

1 Replies
New Member
Jun 1, 2019 12:07:57 AM

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.