Standard deduction

[mjensrud21]

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

[StacyG · Accepted solution]

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.