Do you pay tax on your AGI or your Taxable Income?

We used Turbo Tax for the first time and our AGI is $10,000 and the Taxable is $8,000. The program has us paying on the AGI, but I thought you were supposed to pay on the Taxable Income....?

Public Comments

1. It is ignoring the Deductions? It shouldn't. My TurboTax worked fine.
2. Go back on Turbo Tax and go through that part again, it should give a choice between the two.
3. No, your tax is computed on your taxable income, which is AGI minus exemptions minus standard or itemized deductions.