Submitted by [deleted] t3_10q6kxk in personalfinance
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.
strangebeansgirl t1_j6o5rvb wrote
Thank you! This answered my question
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