Alex and Tory are married and filing jointly. Their gross income is $150,000. How much do they owe in federal taxes?

To calculate how much Alex and Tory owe in federal taxes, we need to consider the U.S. tax brackets for married couples filing jointly for the 2023 tax year. Below are the steps to estimate their federal tax liability:

### 2023 Federal Income Tax Brackets for Married Filing Jointly:
- **10%** on income up to **$22,000**
- **12%** on income over **$22,000** and up to **$89,450**
- **22%** on income over **$89,450** and up to **$190,750**
- **24%** on income over **$190,750** and up to **$364,200**

### Steps to Calculate Federal Taxes:

#### 1. Subtract standard deduction
For 2023, the **standard deduction** for married couples filing jointly is **$27,700**.

So, their **taxable income** is:
\[
150,000 - 27,700 = 122,300
\]

#### 2. Apply the tax brackets:
- **10% on the first $22,000**:  
  \[
  22,000 \times 0.10 = 2,200
  \]
- **12% on income between $22,000 and $89,450**:  
  \[
  (89,450 - 22,000) \times 0.12 = 67,450 \times 0.12 = 8,094
  \]
- **22% on income between $89,450 and $122,300**:  
  \[
  (122,300 - 89,450) \times 0.22 = 32,850 \times 0.22 = 7,227
  \]

#### 3. Total Federal Tax:
Adding up the amounts from the tax brackets:
\[
2,200 + 8,094 + 7,227 = 17,521
\]

### Final Answer:
Alex and Tory owe **$17,521** in federal taxes for the year.

---

Would you like further details or have any questions?

Here are 5 follow-up questions:
1. What other tax deductions could Alex and Tory apply to reduce their taxable income?
2. How does the alternative minimum tax (AMT) work for married filing jointly?
3. How do capital gains affect federal tax calculations?
4. What impact would dependents have on their tax liability?
5. How does the tax treatment differ for single filers compared to married filing jointly?

**Tip:** Always make sure to review updated tax brackets each year, as these numbers can change.

Learn how to calculate the federal taxes for a married couple filing jointly with a gross income of $150,000. This detailed guide walks through the 2023 tax brackets, standard deduction, and how to calculate taxable income and total tax liability. Ideal for students in Grades 11-12 or at the college level.

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