 I'll come to the session in which we'll look at an example that illustrate the concept of filing a single versus filing a joint return, how to compute the taxes for both, and to determine the savings, if any, in comparison filing as a single versus married filing jointly. Let's take a look at this example. John and Carla are engaged and plan to get married. And for this purpose, we're gonna be using the year 2022 tax numbers. John is a full-time student and earned $9,000 from a part-time job. With this income, student loans, savings, and non-taxable scholarship, John is self-supporting. So he can file separately, he's self-supporting. He can get the full standard deduction. For the year, Carla is employed and has wages of $67,100. How much income tax, if any, can Carla save if she and John marry in 2022 and file a joint return? Again, as I mentioned, we're working with year 2022, and those are the standard deduction. We're gonna be assuming they're gonna be taking the standard deduction. This is the standard deduction for a single, $12,950. This is the standard deduction for married filing jointly, $25,900. Let's go ahead and get started. Before we proceed any further, I have a public announcement about my company, farhatlectures.com. Farhat Accounting Lectures is a supplemental, educational tool that's gonna help you with your CPA exam preparation, as well as your accounting courses. My CPA material is aligned with your CPA review course, such as Becker, Roger, Wiley, Gleam, Miles. My accounting courses are aligned with your accounting courses broken down by chapter and topics. My resources consist of lectures, multiple choice questions, true-false questions, as well as exercises. Go ahead, start your free trial today. So let's start to solve this exercise. John makes $9,900. Carla, $67,100. Let's start with John Taxbill. What will be John Taxbill? Well, John's gonna make a has earning of $9,900. Then there's a standard deduction of $12,900, which will wipe out all his taxable income. Therefore, John Taxbill is zero. Why? Because the standard deduction wipe out his tax bill. Carla, $67,100 minus her standard deduction. She's gonna have a taxable income of $54,150. $54,150 falls between $41,775 and $89,075. Therefore, her tax bill will be $4,807.50, plus the amount over $41,775, which is $54,150, minus $41,775, the excess amount, multiply this excess amount by 22%. Therefore, we say her marginal tax rate is 22%. Well, if we do this computation, so $4,807, plus this, the excess amount times 22%, it's gonna give us $2,722.50. Carla's tax bill will be $7,530. So if they file separately, the total tax bill will be $7,530, and John will not have a tax bill. Now, let's work this exercise assuming they file a joint return. Filing a joint return means they combined their income and their total income is $77,000. Then they take the standard deduction. We said they're gonna be taking the standard deduction and that was giving at the first page. Their taxable income will be $51,100, which falls between $19,981,050. Now, what's their tax bill? Their tax bill will be $1,990, plus we're gonna add to that the excess amount over $19,900, the excess amount multiplied by 12%. So 51,100 minus $19,900. This excess amount will be multiplied by 12%. Notice, together they're in a lower tax bracket. Carla by herself was in a 22% tax bracket because we were dealing with a different single. She was in the 22, she fell in the 22 tax bracket based on her income. Together they fall in the 12% tax bracket. So if we do this computation, 1,990 plus the excess amount times 12%, the excess amount over $19,900 times 12% will give us 3,744. If we combine those two, their total tax bill is 5,734. Remember, if each filed separately, they will have a tax bill at 7,530. If the each filed separately is a single, remember John tax bill was zero and Carla was 7,530. Therefore, if they married filing jointly, their tax bill is 5,734, there's a total savings of 1,796. What's the moral of the story? Get married, just kidding. The point is, yes, you do have an advantage if you file married jointly. Now, again, based on the year 2022 and that should be always the case but because the government does favor married filing jointly. But in this recording, what we did is we showed how to compute the tax once again and we learned about the marginal tax rate. For example, as we said, Carla on her own was in the 22% tax bracket. Together, they are in the 12% tax bracket. Now, we could also compute the average tax rate if we choose to 1,000, I'm sorry, for the married filing jointly 5,734 divided by 77,000 and we can find their average tax rate. So, they're in the 12% tax bracket and their average tax rate, as I mentioned in the prior session, will be lower than the marginal and let's see 5,734 divided by 77,000 and it is approximately 7.4%. What should you do now? Go to Farhat Lectures, look at additional resources, lectures, MCQs, true, false, look at the notes. That's gonna help you improve, do better on your CPA exam, enrolled agents exam or in your income tax course. Good luck, study hard and of course, stay safe and get married too.