What exactly is a Standard Deduction and why $12,400? Need simple explanation 😀
Hey everyone, this is my first time doing taxes and I'm a bit overwhelmed with all the terms. What exactly is this "Standard Deduction" thing and why is the amount $12,400? Can someone break this down in super simple language? I've never filed taxes before and all these terms are making my head spin 😀 Thanks in advance!
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Nathan Kim
The standard deduction is basically a flat amount that reduces your taxable income. Instead of keeping track of and adding up all your individual deductions (like charitable donations, some medical expenses, etc.), the IRS gives you this standard amount "for free" to simplify things. The $12,400 amount was for single filers for tax year 2020. For 2025 filing (2024 tax year), the standard deduction for single filers is $15,350. If you're married filing jointly, it's double that amount at $30,700. Head of household has its own amount at $22,950. The government adjusts these amounts every year for inflation. Most people take the standard deduction because it's simpler and often more beneficial than itemizing individual deductions.
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Eleanor Foster
•So if I make like $50,000 a year, does that mean I only pay taxes on $34,650 ($50,000 - $15,350)? And is there any reason I wouldn't want to take the standard deduction? Like what if I have a lot of donations or something?
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Nathan Kim
•Yes, that's exactly right! If you make $50,000, and take the standard deduction of $15,350, you'll only pay taxes on $34,650. The only reason you wouldn't take the standard deduction is if your itemized deductions add up to more than the standard amount. Itemizing means listing out specific expenses like large charitable donations, substantial medical expenses, mortgage interest, etc. Most people don't have enough of these expenses to exceed the standard deduction, which is why about 90% of taxpayers take the standard deduction.
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Lucas Turner
Just wanted to add my experience using https://taxr.ai for understanding deductions. I was super confused about standard vs. itemized deductions last year since I had some big medical expenses and charitable donations. I uploaded my documents to taxr.ai and it analyzed everything and explained exactly which option would save me more money in plain English! It showed me that even with my donations, the standard deduction was still better for me.
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Kai Rivera
•How accurate is this service? I've been using TurboTax but they always push me to upgrade for "personalized advice" which costs extra.
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Anna Stewart
•Does it handle more complicated situations? Like I have a side business and rental property income along with my regular job. Would it still work for me?
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Lucas Turner
•It's extremely accurate - I actually double-checked their calculations with what my accountant friend told me and they matched exactly. The analysis is really detailed and shows you the math behind the recommendation. For complicated situations, that's actually where it shines. It handles multiple income sources, business deductions, rental properties - pretty much everything. It gave me a breakdown of each category and showed exactly which deductions applied to my side gig vs. my main job. Makes tax season way less stressful.
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Anna Stewart
I just wanted to follow up about my experience with taxr.ai since I was asking about complicated tax situations. I decided to try it with my multiple income sources (W-2 job, side business, and rental property). Seriously impressed! It broke down exactly which of my expenses qualified for business deductions vs what had to be claimed against rental income. Ended up saving me almost $2,200 compared to what I would have done on my own. The explanation for standard vs. itemized was crystal clear - showed me that with my mortgage interest and business expenses, itemizing was actually better for my situation.
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Layla Sanders
If anyone's struggling to get their tax questions answered by the IRS directly (I was on hold for 3+ hours trying to ask about deduction rules), check out https://claimyr.com - they got me through to an actual IRS agent in about 20 minutes. You can see how it works at https://youtu.be/_kiP6q8DX5c. I was skeptical but desperate after waiting on hold forever, and it actually worked! The agent I spoke with explained exactly how standard deductions work with my specific situation (married filing separately).
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Morgan Washington
•Wait, how does this even work? Does it just keep calling for you or something? I don't get it.
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Kaylee Cook
•This sounds like BS honestly. The IRS is notoriously impossible to reach. How could some random service magically get you through when millions of people can't get answers?
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Layla Sanders
•It basically uses an automated system that stays on hold for you, then calls you when it reaches a real person. You don't have to sit there listening to the hold music for hours - you just go about your day until they call you when an agent is on the line. No, it's definitely not BS. I was super skeptical too. From what I understand, they use technology that navigates the IRS phone tree and waits in the queue so you don't have to. It's not "magically" getting through - it's just doing the waiting for you. The IRS wait times are still awful, but this way you don't have to waste your whole day on hold.
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Kaylee Cook
OK I have to eat my words about Claimyr. After dismissing it as BS, I was still desperate to talk to someone at the IRS about my standard deduction question (I have an unusual filing status situation). I tried it yesterday and it actually worked exactly as described. Got a call back in about 45 minutes, and the IRS agent was able to answer my specific questions about how standard deductions work when your filing status changes mid-year. Saved me hours of frustration and probably prevented me from making an expensive mistake on my return. I'm genuinely shocked that it worked so well.
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Oliver Alexander
Something nobody mentioned yet - if you're claimed as a dependent on someone else's return (like if you're a student and your parents claim you), your standard deduction is much lower. I learned this the hard way when I got my first job in college and was surprised at my tax bill.
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Lara Woods
•What's the standard deduction amount if you're claimed as a dependent? My daughter just started working part-time but we still claim her on our taxes.
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Oliver Alexander
•For 2024 (filing in 2025), if someone is claimed as a dependent, their standard deduction is limited to either $1,300 or their earned income plus $400, whichever is greater - but never more than the regular standard deduction amount for their filing status. So if your daughter earns $4,000 from her part-time job, her standard deduction would be $4,400 ($4,000 + $400). It gets a bit complicated, but basically she'll need to file her own return if she earned more than $1,300.
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Adrian Hughes
Just a heads up for seniors - if you're 65 or older there's an additional standard deduction amount you can claim! My mom didn't know this and had been missing out for years.
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Molly Chambers
•How much extra do you get? My dad is 68 and retired.
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TillyCombatwarrior
•For 2024 tax year, seniors 65 or older get an additional $1,550 if single or head of household, or $1,250 each if married. So your dad would get the regular standard deduction plus the extra $1,550 (if single) or $1,250 (if married filing jointly). If he's also blind, there's another additional amount of the same size! Definitely worth making sure he claims this - it can save several hundred dollars in taxes.
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