Calculating the Allowable Portion

Based on each taxpayer's situation, you can determine the amount of the standard deduction using one of the following:

Standard deduction amount for the appropriate filing status:
- Form 1040, line 12e
Standard Deduction Chart for People Age 65 or Older or Blind (Form 1040-SR)

Then, you must calculate the allowable portion by using the following formula:

Gross Income Subject to U.S. Tax

___________________________ X Standard Deduction = Allowable Portion

Gross Income From all Sources (including excluded P.R. income)

The numerator of the fraction is the gross income subject to the U.S. tax and the denominator is the total gross income from all sources.

Or, use the standard deduction worksheet in Publication 1321

Standard Deduction