In 2022 Juan (age 29) filed as a single. Assume his taxable income was 27,950 . What amount of tax should be reported on Line 16 of Form 1040? (See Example 1b in the Week 1 Part 2 PowerPoint)

To calculate Juan's tax liability for a taxable income of $27,950, we refer to the IRS tax brackets for the 2022 tax year. For a single filer, the income up to $10,275 is taxed at 10%, and income from $10,276 to $41,775 is taxed at 12%. Therefore, for Juan: - He pays 10% on the first $10,275, which equals $1,027.50. - For the remaining income ($27,950 - $10,275 = $17,675), he pays 12%, which equals $2,121. Adding both amounts, the total tax due would be $1,027.50 + $2,121 = $3,148.50, which should be reported on Line 16 of Form 1040. So Juan's tax liability is approximately $3,149 when rounded to the nearest dollar.