2023 UPDATE: Standard Deductions for 2023: Single: $13,850 (add $1,850 each if you are over age 65 or blind) Married Filing Jointly: $27,700 (add $1,500 for each spouse that is over 65 or blind) Married Filing Separately: $0 if spouse itemizes deductions, $13,850 if not Head of Household: $20,800 (add $1,850 each if you are over 65 or blind) Qualified Widow(er): $27,700 (add $1,500 each if you are over 65 or blind) Unmarried dependents under age 65: $1,250 in unearned income, or $350 plus earned income to a maximum of $13,850
Under United States tax law, the standard deduction is a dollar amount that non-itemizers may subtract from their income before income tax (but not other kinds of tax, such as payroll tax) is applied. Taxpayers may choose either itemized deductions or the standard deduction, but usually choose whichever results in the lesser amount of tax payable. The standard deduction is available to individuals who are US citizens or resident aliens. The standard deduction is based on filing status and typically increases each year, based on inflation measurements from the previous year. It is not available to nonresident aliens residing in the United States (with few exceptions, for example, students from India on F1 visa status can use the standard deduction). Additional amounts are available for persons who are blind and/or are at least 65 years of age. The standard deduction is distinct from the personal exemption, which was eliminated by the Tax Cuts and Jobs Act of 2017 for tax years 2018-2025.
Thank you for clearly explaining deductions... Could you explain how deductions are determined based on the gross amount of each pay period . Does the deduction increase if the gross amount has increased Or should the deduction be consistent from each pay period? Ex.) Hrs wrk: 143hrs worked pay period x $24 per hr. = $3432 Should the YTD match the current deductions Thank you
Your employer deducts Federal (and State) income tax from your pay based on the information you provide when you fill out your W-4. Your employer has no say in these deductions--they (or more likely, their computers) calculate the deductions based on formulas or tables the IRS provides. If you have the same gross pay each pay period, your tax deductions of all sorts (Federal and state income tax, and Social Security and Medicare taxes) should be the same.
2023 UPDATE:
Standard Deductions for 2023:
Single: $13,850 (add $1,850 each if you are over age 65 or blind)
Married Filing Jointly: $27,700 (add $1,500 for each spouse that is over 65 or blind)
Married Filing Separately: $0 if spouse itemizes deductions, $13,850 if not
Head of Household: $20,800 (add $1,850 each if you are over 65 or blind)
Qualified Widow(er): $27,700 (add $1,500 each if you are over 65 or blind)
Unmarried dependents under age 65: $1,250 in unearned income, or $350 plus earned income to a maximum of $13,850
Under United States tax law, the standard deduction is a dollar amount that non-itemizers may subtract from their income before income tax (but not other kinds of tax, such as payroll tax) is applied.
Taxpayers may choose either itemized deductions or the standard deduction, but usually choose whichever results in the lesser amount of tax payable.
The standard deduction is available to individuals who are US citizens or resident aliens.
The standard deduction is based on filing status and typically increases each year, based on inflation measurements from the previous year.
It is not available to nonresident aliens residing in the United States (with few exceptions, for example, students from India on F1 visa status can use the standard deduction).
Additional amounts are available for persons who are blind and/or are at least 65 years of age.
The standard deduction is distinct from the personal exemption, which was eliminated by the Tax Cuts and Jobs Act of 2017 for tax years 2018-2025.
Something doesn't add up
Does your employer have control over the amount of deduction from each pay period...
Thank you for clearly explaining deductions...
Could you explain how deductions are determined based on the gross amount of each pay period . Does the deduction increase if the gross amount has increased
Or
should the deduction be consistent from each pay period?
Ex.) Hrs wrk:
143hrs worked pay period
x $24 per hr.
= $3432
Should the
YTD match the current deductions
Thank you
Your employer deducts Federal (and State) income tax from your pay based on the information you provide when you fill out your W-4. Your employer has no say in these deductions--they (or more likely, their computers) calculate the deductions based on formulas or tables the IRS provides. If you have the same gross pay each pay period, your tax deductions of all sorts (Federal and state income tax, and Social Security and Medicare taxes) should be the same.