I understand how tax credits and deductions work. A tax deduction only reduces taxable income. If one doesn't have itemized tax deductions exceeding the standard deduction then a relatively small deduction, on its own, has zero net benefit to the taxpayer.
One can take a deduction from their taxable income and it not matter in the total amount of tax owed.
I understand how tax credits and deductions work. A tax deduction only reduces taxable income. If one doesn't have itemized tax deductions exceeding the standard deduction then a relatively small deduction, on its own, has zero net benefit to the taxpayer.
One can take a deduction from their taxable income and it not matter in the total amount of tax owed.