Worldwide Tax Summaries

United States

Individual - Sample personal income tax calculation

Last reviewed - 20 January 2023

Assumptions

Calendar year 2022

Resident alien husband and wife with two children (age 7, 9), 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 2022 tax tables.

Tax computation

	USD
Gross income:
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	(25,900)
Taxable income	145,600

Tax thereon:
On taxable income of 142,600 (145,600 less capital gain of 3,000) at joint-return rates	22,606
On 3,000 capital gain at 15%	450
Total tax before credits	23,056
Less:
Credits (child tax credit equal to 2,000 per child)	(4,000)
Net tax	19,056