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Is a person always guaranteed AT least as much or more the value of the standard deduction if they are not itemizing their taxes?
Asks the person who has never received a tax return as large or larger than the standard tax deduction.... Yes, I make more than $6,300 a year by far
5 Answers
- ShayLv 74 years ago
That is not how the standard deduction works. That is not a refund amount. That is the amount that your taxable income is reduced by.
If you make 10,000 for the year, and there was no deductions, you would be taxed for all 10,000 which would be about 1,000 in taxes at 10%.
But, if you make 10,000 for the year and then have a standard deduction of $6,300, that amount is not taxed so you only owe taxes on 3,700 and at 10%, that means you only owe $370 in taxes instead of $1000.
Your actual tax refund is based on how much you overpaid or how many additional tax credits, such as earned income credit, you might qualify for.
This is a very simple explanation and does not take into account the personal exemption amount of $4,050 which also reduces your taxable income.
- JudyLv 74 years ago
no. nobody is guaranteed ANY refund. Deduction means that much of your income isn't taxed. It's not something you get back.
- ?Lv 74 years ago
Your thought process is erroneous. The standard DEDUCTION (look the word up) does not mean you get a refund of $6,300. What happens is that you do not pay any FIT on the first $6,300 you earned.
- ?Lv 74 years ago
Nope obviously u haven't opened a book on how to do taxes.
Libraries got books on how.
IRS GOV website has free education
