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New Member
posted Jan 23, 2022 3:41:26 PM

Does the standard deduction mean I'll owe money? If so why?

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3 Replies
Level 15
Jan 23, 2022 3:44:00 PM

a taxpayer is entitled to either the standard deduction or itemized deductions. generally, either reduces taxable income and thus the taxes a taxpayer would have to pay. but because certain other items are based on taxable income. it can be stated for certain. 

 

 

 

Level 15
Jan 23, 2022 3:44:12 PM

No that is not what standard deduction means.   Your standard deduction is the amount of income you do not have to pay any tax on.   A certain amount of your income is "tax free" based on your filing status.

 

https://ttlc.intuit.com/community/credits-and-deductions/help/what-s-my-standard-deduction/00/

 

 

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12a of your 2021 Form 1040.

 

 

 

2021 STANDARD DEDUCTION AMOUNTS

 

SINGLE $12,550  (65 or older + $1700)

 

MARRIED FILING SEPARATELY $12,550  (65 or older + $1350)

 

MARRIED FILING JOINTLY $25,100  (65 or older + $1350 per spouse)

 

HEAD OF HOUSEHOLD  $18,800  (65 or older +$1700)

 

Legally Blind + $1350

Level 15
Jan 23, 2022 3:45:16 PM

No.  The Standard Deduction has nothing to do with if you owe anything.   Actually it is a good thing.

 

Everyone gets to take a Standard Deduction amount off their income before the tax is calculated (it's a good thing - it lowers your income).  Which means the first 12,550 Single (25,100 Joint) of your income is not taxed and is tax free.  Unless their itemized deductions are more.  Itemized deductions are things like Medical, Gifts to Charity, State Income Taxes Paid, Mortgage Interest, Property Taxes, Car Registration fees, etc.