Thursday, July 30, 2009

Why does my standard deduction not effect my refund amount at all?

i entered the $5350 for standard deductions ( b/c larger then my dental/med. bills) and it did not effect my refund amount?





i thought you get money back from dental/medical bills over 7.5% of you AIG?? im using form 1040. shouldn't i get more back??

Why does my standard deduction not effect my refund amount at all?
Your medical and dental amounts also do not affect your refund.. if you itemize or take the standard deduction.. all that happens is your taxable income is reduced.. once you hit zero, you stay at zero taxable income, then your tax owed is zero and your refund is also zero. Whatever withholdings you have get refunded to you.. but that refund amount stays the same no matter what your itemized amount or your standard deduction is. Make sense?


If you have a child, you may be eligible for the EIC.. which is considered a straight refund. Best Wishes!
Reply:The medical/dental bills are only a part of total itemized deductions. Your total itemized deductions need to be larger than the standard deduction for them to affect your taxable income. Sorry I can't tell you if you should be getting more of a refund back, but you didn't give enough info to answer that question.


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