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Author: FAEZ Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121564  
Subject: Standard deduction question Date: 8/14/2010 1:15 PM
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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.

Andy
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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110889 of 121564
Subject: Re: Standard deduction question Date: 8/14/2010 1:31 PM
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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.


Bzzzz! Let's all look together at line 2. The worksheet says:

"No. Enter the amount from line 1 on line 4, skip line 3,
and go to line 5."

Go back and do it right and you'll get the right answer.

Phil
Rule Your Retirement Home Fool

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Author: FAEZ Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110890 of 121564
Subject: Re: Standard deduction question Date: 8/14/2010 1:37 PM
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Go back and do it right and you'll get the right answer.

Imagine that! I figured it was something I missed.

It's tough being over 65! ;-)

Thanks.

Andy

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