When filing jointly is the personal exemption added to the standard deduction for taxable income?

I used an online tax calculator and I noticed that as filing jointly as a married couple we receive a $10,700 deduction in addition to another personal exemption of $6,800. Is that how it works? is the personal exemption added to the $10,700 and deducted from the gross income leaving taxable income? If we both earned $50,000 for the year will our taxable income be $50,000 - $10,700 - $6,800 = $32,500???? Thanks for any help in advance.

Public Comments

true ... for this year figures will change for next year
Well, they are both subtracted from your adjusted gross income, which amounts to the same thing as adding them together and then subtracting the total. Your example is correct.
The last equation is exactly right. You always take your gross income, then subtract the standard/itemized deduction, then subtract the personal exemptions giving you your taxable income. :)
Your figures should be correct. However, do not forget to also subtract any adjustments to your income such as student loan interest or IRA deposits (which can be made through 4/15/08 for 2007). And then suibtract any credits available to you such as residential energy, etc. This you subtract from the tax owed, not the income. So there you go, good luck, and have a great night. ++