Final answer:
The tax bill for a married couple filing jointly with a gross income of $168,000 taking the standard deduction is calculated to be $22,475.78 in 2022. Their marginal tax rate is 22%, while their effective tax rate comes out to approximately 13.38%.
Step-by-step explanation:
To calculate the tax bill for a married couple filing jointly with a gross income of $168,000 and taking the standard deduction in 2022, we use the tax brackets for that year. Assuming no for AGI deductions, the standard deduction for a married couple filing jointly in 2022 is $25,900. This brings the taxable income to $142,100 ($168,000 - $25,900). According to the IRS tax brackets for 2022, the couple would owe: 10% on income up to $20,550 = $2,055 12% on the income between $20,551 and $83,550 = $7,560 22% on the income between $83,551 and $178,150 = $12,860.78 ($142,100 - $83,550 = $58,550; $58,550 x 22% = $12,860.78) Adding these amounts up, the couple's total tax bill would be $22,475.78. The marginal tax rate is the rate applied to the last dollar of income earned, which for this couple would be within the 22% tax bracket for 2022. Finally, to find their effective tax rate, we divide the total tax owed by their gross income: $22,475.78 / $168,000 = approximately 13.38%.