Solved: Why do I have federal deductions when I don't owe the government any taxes.
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moniquemathis45
New Member

Why do I have federal deductions when I don't owe the government any taxes.

 
1 Best answer

Accepted Solutions
ChristieB
New Member

Why do I have federal deductions when I don't owe the government any taxes.

The standard/itemized deductions reduce the amount of your taxable income. If, when you are logged into TurboTax, you go to Tax Tools on the left-hand side, click on Tools, and then "View Tax Summary," you will be able to see a sort of progression of your tax return so far. 


On the tax summary, you will start with your total income on the first line, and then you will have your standard/itemized deductions subtracted and any other adjustments that need to be made in order to get to your taxable income


Underneath the taxable income is the tentative tax. If your tentative tax amount is the same as your total credits, this means that your tax liability is 0, and you will not further benefit from any non-refundable credits such as the Child Tax Credit or the Child and Dependent Care Credit. 


Your refundable credits, such as the Earned Income Credit and the Additional Child Tax Credit, can be found added to the line that says total payments. 


If you'd like to see the ctual dollar amounts of these four credits that you will be receiving on your tax return, you can click Preview My 1040 on the left side of your screen when viewing your tax summary


Child Tax Credit: Line 12a

Child and Dependent Care Credit: Scroll down to Schedule 3: Line 49


Earned Income Credit: Line 17a

Additional Child Tax Credit: Line 17b


If you don't see anything listed on these lines, but believe that there should be, I would go back through the interview sections for each of them in TurboTax. If you do not qualify, there will be a brief summary of the reasons why, and you can post that here so that I can help you further. 

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4 Replies
ChristieB
New Member

Why do I have federal deductions when I don't owe the government any taxes.

Are you referring to the standard/itemized deductions listed on your tax return?
moniquemathis45
New Member

Why do I have federal deductions when I don't owe the government any taxes.

Yes
moniquemathis45
New Member

Why do I have federal deductions when I don't owe the government any taxes.

Trying to figure out why my dependents amount is so low and I have 3 dependents 7 and under..I believe that federal deduction is screwing me over and I'm trying to fix it before submitting my return. I don't owe anything from the previous year so I should get my full federal credit and maximum dependent amount
ChristieB
New Member

Why do I have federal deductions when I don't owe the government any taxes.

The standard/itemized deductions reduce the amount of your taxable income. If, when you are logged into TurboTax, you go to Tax Tools on the left-hand side, click on Tools, and then "View Tax Summary," you will be able to see a sort of progression of your tax return so far. 


On the tax summary, you will start with your total income on the first line, and then you will have your standard/itemized deductions subtracted and any other adjustments that need to be made in order to get to your taxable income


Underneath the taxable income is the tentative tax. If your tentative tax amount is the same as your total credits, this means that your tax liability is 0, and you will not further benefit from any non-refundable credits such as the Child Tax Credit or the Child and Dependent Care Credit. 


Your refundable credits, such as the Earned Income Credit and the Additional Child Tax Credit, can be found added to the line that says total payments. 


If you'd like to see the ctual dollar amounts of these four credits that you will be receiving on your tax return, you can click Preview My 1040 on the left side of your screen when viewing your tax summary


Child Tax Credit: Line 12a

Child and Dependent Care Credit: Scroll down to Schedule 3: Line 49


Earned Income Credit: Line 17a

Additional Child Tax Credit: Line 17b


If you don't see anything listed on these lines, but believe that there should be, I would go back through the interview sections for each of them in TurboTax. If you do not qualify, there will be a brief summary of the reasons why, and you can post that here so that I can help you further. 

View solution in original post

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