United States
Individual - Sample personal income tax calculation
Last reviewed - 08 August 2023Assumptions
Calendar year 2023
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 2023 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 | (27,700) |
Taxable income | 143,800 |
Tax thereon: | |
On taxable income of 140,800 (143,800 less capital gain of 3,000) at joint-return rates | 21,591 |
On 3,000 capital gain at 15% | 450 |
Total tax before credits | 22,041 |
Less: | |
Credits (child tax credit equal to 2,000 per child) | (4,000) |
Net tax | 18,041 |