If we (66 & retired) have $20K in pension distributions plus $26K from Soc Sec for 2019 and the Federal Std Deduction is $24,400, do we owe any Fed Income Taxes?

[genesisone11]

We're 66, retired, married filing jointly, with an annual income of $46,000 (pension monthly distributions equal about $19,500 and Soc Sec about $26,500).  Am I correct, 1)Pension is not counted toward "Combined Income," so NO Soc Sec income is taxable; and, 2)Our Federal tax liability would be based solely upon the adjusted income of our pension distributions minus the standard deduction and other itemized deductions?

[Hal_Al · Accepted solution]

No, you do not owe any tax. 

Q.1. No.  Your pension is taxable income and does count toward "Combined Income". So, $19,500 + half of $26,500 = $32,750. Since that is more than $32,000, a small portion of your SS is taxable. 

Q.2. The total (your adjusted gross income [AGI] is still less than your Standard deduction ($26,600, rather than $24,000 since you're both over 64), so you still have no taxable income.