Remember, you pay taxes on your Adjusted Gross Income (AGI) - the net amount of taxable income, not all of your income may be taxable. For example, not all of the social security you received is taxable. Next, your AGI is reduced by your standard deduction or your itemized deductions, whichever is higher. For 2023, the Standard Deduction for a single person over age 65 is $15,700 and for a married couple, both over age 65, is $31,400.
You are taxed on any balance after the appropriate deduction above. If $23,000 is your 2023 total income and you are single, you would pay 10% tax on $7,300 or $730. If you file as a married couple, both over age 65, you would pay 10% tax on $1,000 or $100.
Hope this helps.
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