Does the Standard Deduction reduce your earned income first or your dividend income first
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Does the Standard Deduction reduce your earned income first or your dividend income first

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The standard deduction reduces your total taxable income, not a specific type of income. It doesn't specifically reduce your earned income or your dividend income first. When you calculate your taxable income, you add together all your sources of income to get your total income. Then you subtract the standard deduction from your total income. The result is your taxable income, which is the amount of income that you will pay taxes on. This taxable income includes all types of income, such as earned income, dividend income, interest income, etc. The tax rates applied to each type of income may vary, but the standard deduction itself does not differentiate between types of income.
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