Whats the maximum deduction can can have on my income tax?

Question

I'm wondering how someone who had like 1500 dollars in federal tax withheld can receive 3300 dollars for a dependent. Does the government give you more then they take?

Answer 1

the Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

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Answer 2

Sometimes they do, usually through the Earned Income Credit which is available if you had earned income and the total is low enough. The limits, and the amount you would get, depend on income, filing status and number of dependent children.

Answer 3

The $3300 for the individual deduction is only subtracted from your total adjusted gross income (your wages, earned interest,etc) plus your standard deduction or itemized deduction prior to determining your actual tax. ($1,500) This deduction is just to help in reducing your tax in the tax tables because you have an exemption to take care of.

Answer 4

www.irs.gov