Why aren't my deductibles factored?

petersr22 · ‎May 31, 2019

I added $1000s worth of deductibles including owning a home/charitable donations, etc. but it did not affect what I owed at all. How are those items factored?

Howard1948 · ‎May 31, 2019

Deductions such as medical expenses, charitable contributions, mortgage interest, property taxes, state and local income or sales taxes and others are what is known as “itemized deductions”. You can see a more complete list of all these deductions, at least the most common, by looking at Schedule A of Form 1040. They are used to reduce your taxable income. The total of all your itemized deductions must exceed your standard deduction to be of any tax benefit. Anyone filing a Federal income tax return (other than children under the age of 24 with unearned income) is entitled to the standard deduction. The standard deduction for 2016 is $6,300 Single and $12,600 Married Filing Jointly.

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Howard1948 · ‎May 31, 2019

Deductions such as medical expenses, charitable contributions, mortgage interest, property taxes, state and local income or sales taxes and others are what is known as “itemized deductions”. You can see a more complete list of all these deductions, at least the most common, by looking at Schedule A of Form 1040. They are used to reduce your taxable income. The total of all your itemized deductions must exceed your standard deduction to be of any tax benefit. Anyone filing a Federal income tax return (other than children under the age of 24 with unearned income) is entitled to the standard deduction. The standard deduction for 2016 is $6,300 Single and $12,600 Married Filing Jointly.