Why is our standard deduction not $ 40,500 with three people over 65 claimed on return?

[xmasbaby0]

You do not get an standard deduction for a dependent you are claiming.  If you are a married couple 65 or older your standard deduction is $26,600.  If you are claiming a dependent you get the credit for other dependents for that person.

CREDIT FOR OTHER DEPENDENTS

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-cre...

2018 Standard Deductions:

Single   $12,000  (+ $1600 65 or older)

Married Filing Separately    $12,000  (+ $1300 65 or older)

Married Filing Jointly  $24,000  (+ $1300 each spouse 65 or older)

Head of Household  $18,000  (+ $1600 65 or older)

Look at line 8 of your Form 1040 to see your standard or itemized deductions.