Question: how much tax should i deduct from my old age pension?
Answer: The single person will be able to deduct $12,000 as a standard deduction, leaving $3,000 to get taxed. The rate is 10%, so estimated tax will be $300. Because that's less than $1,000, you won't need to have any tax withheld from your pension, instead just paying the $300 when you file your return.