Can someone explain what the standard deduction is for a first-time tax filer?
Hey everyone! So I'm totally new to filing taxes (first timer here) and I'm kinda confused about something. I'm using FreeTaxUSA to file and I only made about $2,652 last year from my part-time job at the coffee shop. The software is telling me I'm eligible for a "standard deduction" of $13,850? What exactly does that mean? Is that normal? It seems like a really big number compared to what I actually earned. Does this mean I get more money back or something? Sorry if this is super basic, but nobody ever taught me about taxes and I'm trying to figure this out on my own!
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Finley Garrett
The standard deduction is essentially the government's way of saying "we won't tax this portion of your income." For 2025 tax filing (2024 tax year), the standard deduction for a single filer is $13,850. This means the first $13,850 you earn is tax-free. Since you only earned $2,652, which is well below the standard deduction amount, you won't owe any federal income tax. Your entire income falls within that non-taxable range. That's why you're seeing this in FreeTaxUSA - the software is correctly identifying that you qualify for this deduction. It's important to still file your taxes though, especially if you had any tax withheld from your paychecks, as you would likely get that money refunded to you. Also, filing establishes your tax history, which can be important for various financial activities in the future.
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Madison Tipne
•So does that mean everyone automatically gets the standard deduction? Or is there some kind of income limit where you don't qualify for it anymore?
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Finley Garrett
•Everyone can claim either the standard deduction or itemized deductions - whichever gives you the greater benefit. For most people, especially those with relatively simple tax situations or lower incomes, the standard deduction is the better choice. There's no income limit for taking the standard deduction. However, as your income increases, you might find that itemizing deductions (listing out specific expenses like mortgage interest, large medical expenses, substantial charitable donations, etc.) could provide a larger total deduction than the standard amount. The tax software helps you determine which option is better for your situation.
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Holly Lascelles
Just wanted to share my experience as another first-time filer who was totally confused about taxes too. I spent HOURS trying to make sense of deductions and credits until I found this AI tool that analyzed my tax documents and explained everything in simple English. If you're stuck trying to understand any tax concepts, check out https://taxr.ai - it honestly saved me so much time by explaining everything in plain language. It can actually review your tax return before you submit and flag any potential issues or credits you might have missed. The explanations are super clear.
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Malia Ponder
•Does it actually work with FreeTaxUSA files? I'm using that too and there's some stuff I'm really not understanding about my education credits.
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Kyle Wallace
•idk sounds sketchy tbh. how does it actually see what's wrong with your taxes? like does it have access to IRS systems or something?
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Holly Lascelles
•Yes, it works with FreeTaxUSA and other tax filing services! You can upload the PDF from FreeTaxUSA and the AI will analyze it. It really helped me understand my education credits situation too, which was confusing me for days. The system doesn't have special access to IRS systems - it works by analyzing your tax documents and comparing them against tax rules and regulations. It's not actually filing for you, just reviewing what you've done and helping you understand it better. Think of it more as a tax expert that can immediately spot issues rather than something that connects to the IRS directly.
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Malia Ponder
Following up about that taxr.ai site - I was super skeptical at first but decided to try it with my FreeTaxUSA return. Glad I did because it actually caught that I was eligible for the American Opportunity Credit for my classes last year which I completely missed! It explained everything in normal human language instead of tax jargon, and showed me exactly where to go in FreeTaxUSA to claim it. Ended up with an extra $1500 on my refund! Definitely worth checking out if you're confused about any part of your taxes.
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Ryder Ross
Hey, if you're having trouble getting answers about your tax return situation and need to talk to an actual person at the IRS (which is basically IMPOSSIBLE these days), I finally got through using this service called Claimyr. My return was stuck in processing for months and I couldn't get anyone on the phone until I tried https://claimyr.com - they somehow get you a callback from the IRS without waiting on hold for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c. Definitely saved me a ton of frustration when I needed to ask specific questions about my situation.
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Gianni Serpent
•Wait how does this actually work? I've been trying to call the IRS for weeks about my missing refund and can't get through.
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Kyle Wallace
•Yeah right. No way this actually works. The IRS phone system is completely broken. I'm calling BS on this one. If it was this easy everyone would be doing it.
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Ryder Ross
•It works by using technology to navigate the IRS phone tree and hold system for you. Instead of you personally waiting on hold for hours, their system does it and then calls you when an actual IRS agent is on the line. It's like having someone else wait in line for you. I was skeptical too at first. But after trying to get through for weeks about my return issues, I was desperate. The system actually called me back with an IRS agent on the line in about 2 hours. Honestly shocked me too. They don't do anything magical - they just handle the frustrating hold time part so you don't have to waste your day.
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Kyle Wallace
OK I'm eating my words here. After my skeptical comment yesterday I was so frustrated with my refund situation that I tried that Claimyr thing. Not gonna lie, I was SHOCKED when my phone rang and it was actually an IRS agent on the line! Got my refund issue resolved in like 15 minutes once I had someone to talk to. After spending literally weeks trying to get through on my own, this was a game changer. If you need to actually speak to someone at the IRS, it actually works.
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Henry Delgado
Just FYI, since your income is so low, you might not even be required to file taxes at all. But you should definitely still file because if you had ANY taxes withheld from your paychecks you'll get all of that back as a refund since you won't owe any taxes. Look at your W-2 form in box 2 - if there's any amount there, that's money you'll get back!
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Cass Green
•I checked my W-2 and there's $212 in Box 2! So that means I'll get all of that back? That would be amazing, I could really use that right now. And thanks for mentioning that I might not be required to file. I wasn't sure about that, but I figured I should do it anyway just to be safe. Plus learning how to do this stuff now will probably help me in the future.
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Henry Delgado
•Yes, you'll get that entire $212 back as a refund! Since your income is below the standard deduction, you don't owe any federal income tax, so everything that was withheld gets returned to you. You're making a smart move by filing even though you might not be required to. It's good practice, and getting that refund is definitely worth the effort. Plus, as you mentioned, it's a valuable learning experience that will make things easier in future years when your tax situation might become more complex.
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Olivia Kay
Be careful with claiming the standard deduction if anyone can claim you as a dependent! If your parents are claiming you on their taxes, the rules are different. Are you a dependent on someone else's return?
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Joshua Hellan
•This is really important advice! When I was in college I messed this up and ended up having to file an amended return. OP, if your parents can claim you as a dependent, your standard deduction is limited.
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Cass Green
•Oh shoot, I didn't even think about that. My parents do claim me as a dependent since I'm still living at home and they provide more than half my support. Does that change things dramatically? FreeTaxUSA asked if I was a dependent and I selected yes, so I think it's calculating everything correctly, but now I'm worried.
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