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jesusd0697
New Member

How is it possible to only get a refund of $595 when just my car expenses are $2k+

 
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Accepted Solutions
xmasbaby0
Level 15

How is it possible to only get a refund of $595 when just my car expenses are $2k+

STANDARD DEDUCTION

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, job-related expenses, casualty and theft losses, for example, must meet thresholds that are pretty hard to reach.  The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Here are the Standard Deductions for 2017

Your standard deduction lowers your taxable income.  It is not a refund 

2017 Standard Deductions

Single    $6350  (65 or older + $1550)

Married Filing Separately   $6350  (65 or older +  $1250)

Married Filing Jointly           $12,700  (65 or older + $1250@)

Head of Household $9350  (65 or older + $1550)

Look on line 40 of your Form 1040 to see your itemized deductions

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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3 Replies
SweetieJean
Level 15

How is it possible to only get a refund of $595 when just my car expenses are $2k+

Car expenses for what exactly?  Commuting is not deductible.
xmasbaby0
Level 15

How is it possible to only get a refund of $595 when just my car expenses are $2k+

STANDARD DEDUCTION

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, job-related expenses, casualty and theft losses, for example, must meet thresholds that are pretty hard to reach.  The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Here are the Standard Deductions for 2017

Your standard deduction lowers your taxable income.  It is not a refund 

2017 Standard Deductions

Single    $6350  (65 or older + $1550)

Married Filing Separately   $6350  (65 or older +  $1250)

Married Filing Jointly           $12,700  (65 or older + $1250@)

Head of Household $9350  (65 or older + $1550)

Look on line 40 of your Form 1040 to see your itemized deductions

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
xmasbaby0
Level 15

How is it possible to only get a refund of $595 when just my car expenses are $2k+

JOB RELATED EXPENSES
Only the amount of job-related expenses that are OVER 2% of your adjusted gross income get added to your list of itemized deductions, which still must exceed your standard deduction in order to make a difference on your return.  This is kind of a hard deduction to get.  If you need to enter these, go to Federal>Deductions and Credits>Employment Expenses>Job-Related Expenses.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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