people are always looking for right offs! how can this benefit how much you owe? say i made 70K n Ive got 3K in deductions how does effect how much i pay to irs you get the point?
2006-07-29 07:56:53 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
$3000 in deductions won't help you any, since everyone gets an automatic standard deduction - last year the minimum, for a single person under 65, was $5000, so unless your deductions total more than that, you're ahead to take the standard deduction. You don't get to take both - you have to choose between standard and itemizing. And if you itemize, some deductions like medical costs only count for the amount more than a certain percent of your income.
If your itemized deductions exceed the standard deduction for your situation, then you pay less taxes because your deductions are subtracted from your income instead of the standard deduction being subtracted, before your tax is calculated.
2006-07-29 13:07:29 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
That means that only $67,000 of your income is taxable. Whatever the IRS took out in taxes on that other $3000 will be returned, unless your employer didn't deduct enough of your earnings for taxes.
2006-07-29 15:01:05 · answer #2 · answered by lj1 7 · 0⤊ 0⤋
I don't get the point or the question.
2006-07-29 15:01:10 · answer #3 · answered by williegod 6 · 0⤊ 0⤋