Question

Why does the standard deduction not lower my taxes?

Forum|Forum|5 years ago
March 21, 2021
1 reply
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the total "wage and income" section comes out to be around $59K, and the federal tax due is around $6500, but after using the standard deduction of $27,400, the tax due is still $6500. shouldn't my taxable income drop to around $31,600 and my tax due down to around $3800?

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Mike9241

we can't see your return so you need to look at it line by line. what you posted doesn't make sense. for a joint return with $31.6K in taxable income, tax would only be $3400 so can't tell where you got that $3800 from. is your adjusted gross income $59K (line 11)? is any of your income from self-employment? net schedule c income has 15% in fica and medicare taxes in addition to regular income taxes on your taxable income (line 15)