United States

Individual - Sample personal income tax calculation

Last reviewed - 20 January 2020

Assumptions

Calendar year 2020

Resident alien husband and wife with two children, both of whom qualify for the child tax credit; one spouse earns all the income, none of which is foreign-source income. A joint return is filed. AMT liability is less than regular tax liability.

Calculations based on preliminary 2020 tax tables.

Tax computation

Gross income   USD
Salary   150,000
Interest   18,500
Long-term capital gain (on assets held for more than one year)   3,000
Total gross income   171,500
Adjustments   0
Adjusted gross income (AGI)   171,500
Less - standard deduction 24,800  
Taxable income   146,700
Tax thereon    
On taxable income of 143,700 (146,700 less capital gain of 3,000) at joint-return rates   23,194
On 3,000 capital gain at 15%   450
Total tax before credits   23,644
Less - credits (child tax credit equal to 2,000 per child) 4,000
Net tax 19,644