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April 22, 2020
Question

What percentage of my deductible is deducted before taxes?

  • April 22, 2020
  • 1 reply
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do you deduct your deductible amount from your actual income to see what your taxable income is?

1 reply

Employee
April 22, 2020

There are deduction limitations with several types of deductions. There are income limits on charitable donations. There is a $10,000 limit on real estate and state income or sales taxes. Only the amount of medical expenses in excess of 7.5% of your AGI can be deducted. Once all of these limitations have been applied, the resulting deductible amount can be subtracted from the Adjusted Gross Income to determine taxable income. If the deductions are less than the standard deduction for your filing status, TurboTax will choose the standard deduction and enter it on your tax return.