Final answer:
To calculate the federal income tax owed on a gross income of $163,000 for a single filer, subtract the standard deduction to find taxable income and then apply the relevant tax brackets to determine the total tax. Without the specific tax brackets, we can't provide an exact amount.
Step-by-step explanation:
Federal Income Tax Calculation Overview
To determine how much federal income tax is owed for 2020 based on a gross income of $163,000, we need to consider the taxpayer's filing status, taxable income, and the federal tax brackets for that year. Taxable income is calculated by subtracting the standard deduction from the adjusted gross income. Assuming this individual takes the standard deduction for a single filer in 2020, we then apply the tax rates as outlined by the tax brackets to this taxable income.
Without access to the specific tax brackets for the year 2020 within the provided context, we cannot give an exact number. However, the concept is that the tax owed is calculated in segments: a portion of income is taxed at one rate within one bracket and the excess is taxed at a higher rate in the next bracket, up to the point where the income falls. This is reflective of the marginal tax rate.
In this simplified example, it is explained how the marginal rate works. If a single taxpayer's income is $35,000, and the rates are 10% for income up to $9,075, 15% for income from $9,075 to $36,900, then their marginal tax rate is 15%. They pay 10% on the initial $9,075 and 15% on the remaining amount. Remember to round to the nearest dollar where necessary to calculate your exact tax payment.