Married filing jointly 67 yr old, wife turns 65 in 2022, Standard ded is $25,900 + $1,400 each for age = new st. ded. of $28,700. If our interest, SS, pension AGI is $100,000 do we subtract the standard deduction and only owe tax on $71,300 ?

[tsmeadow · Accepted solution]

Hello @Harv123, 

I hope you are doing well today.  To answer your question, Yes, you would subtract your standard deduction amount from your adjusted gross income to determine your taxable income.  Your taxable income is what is used to determine the income tax owed.  

Please note, there are other items that can cause an adjustment to your gross income prior to subtracting the standard deduction.  These are generally called "above the line" deductions.  They are listed on the Schedule 1 and include items like educator expenses,  student loan interest deduction, etc...  

Please let me know if you have any additional questions.

Thanks,

Taylor, Tax Attorney, 12 Years

[Bsch4477]

Correct. That is your taxable income.