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Subject:  Standard deduction question Date:  8/14/2010  1:15 PM
Author:  FAEZ Number:  110888 of 127753

My wife and I are retired and we're both over 65.

In figuring out our standard deduction, the 1040 instructions lead me to a worksheet on page 36.

Line 1 is filing status; married filing jointly; I enter $11,400

Line 2: we can't be claimed as dependents on someone else's return so I go to line 3.

Line 3: "Is your earned income more than $650?"

We have no earned income. We have social security, a pension, and interest from investments.

So on line 3, earned income is NOT more than $650 so I enter, as instructed, $950.

Line 4 says, "Enter the smaller of line 1 or line 3. That would be $950.

Line 5; we're both born before January 2, 1945 so we get $2,200 on line 5.

Line 6 adds line 4 and line 5 for a total of $3,150.

Wow! What did I miss? I thought our standard deduction should be $11,400 plus another $2,200 for being old.

Anyone else run into this?

Thanks in advance.

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