In 2022 Ricky (age 29) and Lucille (age 28) are married and filing jointly. Assume their 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 determine the amount of tax Ricky and Lucille should report on Line 16 of Form 1040 for the tax year 2022, we'll follow these steps: ### **1. Understand Taxable Income** - **Taxable Income:** $27,950 ### **2. Apply the 2022 Tax Brackets for Married Filing Jointly** For the tax year 2022, the **Married Filing Jointly** tax brackets are as follows: - **10%** on income **up to $20,550** - **12%** on income **over $20,550 up to $83,550** - **22%** on income **over $83,550 up to $178,150** - *(Further brackets exist but are not applicable in this scenario)* ### **3. Calculate the Tax Liability** 1. **First Portion:** - **Amount:** $20,550 - **Tax Rate:** 10% - **Tax:** $20,550 * 10% = **$2,055** 2. **Second Portion:** - **Amount:** $27,950 - $20,550 = $7,400 - **Tax Rate:** 12% - **Tax:** $7,400 * 12% = **$888** 3. **Total Tax:** - **$2,055 (First Portion) + $888 (Second Portion) = $2,943** ### **4. Report on Form 1040** - **Line 16 of Form 1040:** **$2,943** ### **Conclusion** Ricky and Lucille should report **$2,943** as their total tax on Line 16 of Form 1040 for the tax year 2022.