Standard deduction
The standard deduction is a fixed amount of income that isn't taxed at all. Taxpayers take it or itemise their deductions, whichever is larger.
It exists so that everyone has a slice of tax-free income without keeping receipts.
In Journey Shares
The first $309.62 a week is tax-free in the game, the real US $16,100 standard deduction spread over 52 weeks.
Related terms
- Tax bracket: A tax bracket is a range of income taxed at one rate.
- Capital gains tax: Capital gains tax is tax on the profit from selling an investment for more than you paid.
Practise with $10,000 in play money
Free. No real money involved.
For learning only. This isn't financial advice.