Viewing a single comment thread. View all comments

nothlit t1_j6o5c3c wrote

A deduction reduces your taxable income, which indirectly reduces your tax by whatever your marginal tax rate happens to be.

For example, in the 12% tax bracket, a $4800 deduction reduces your tax by 0.12 x 4800 = $576 over the course of the year, or $48 per paycheck if you are paid monthly.

2