• Herb and Alice are married and file a joint return. Herb is 74 years old and Alice turns 72 in February 2023. Neither are blind. • Both Herb and Alice are retired. Herb works part time as a greeter. • Alice is confused about the Required Minimum Distribution rules, and wants to know when she should take her first distribution from her IRA. • Herb earned $12,000 in wages and has fully taxable pension income of $4,800. The couple also received Social Security benefits of $46,000. They received no other income in 2023. • Herb and Alice's grandson, Stuart, lives with them while he attends the local university. Stuart is 20, a full-time student, and is claimed as a dependent by his parents. • Herb, Alice and Stuart are U.S. citizens, lived in the United States all year, and have valid Social Security numbers. 1. Herb and Alice's standard deduction is $27,700.

Regarding Alice's question about Required Minimum Distributions (RMDs), the rules state that individuals must start taking RMDs from their retirement accounts such as IRAs by April 1 of the year following the year they turn 72. Since Alice turns 72 in February 2023, she would need to take her first RMD by April 1, 2024. As for the standard deduction for Herb and Alice, the amount you've mentioned, $27,700, is not accurate for a couple who are both over the age of 65 and not blind. For the tax year 2023, the standard deduction for married couples filing jointly is $27,700. However, since both Herb and Alice are over the age of 65, they are each eligible for an additional standard deduction of $1,500 (for tax year 2023). Therefore, their total standard deduction would be: Base standard deduction: $27,700 Additional deduction for Herb (over 65): +$1,500 Additional deduction for Alice (over 65): +$1,500 Total standard deduction: $30,700 This higher standard deduction helps to lower their taxable income, which in turn may reduce the amount of tax they owe.

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