Question

Job A pays an annual salary of $17,500 while job B pays $18,000. The taxpayer choosing between the 2 jobs files his federal income tax return with a standard deduction of $5700, only himself as an exemption for$3650, and no additional adjustments to income. After taxes, what is the difference in pay between the two jobs? Use the table below as a guide.

Answer 1

The answer is B) $435

Explanation:

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Answer 2

The 17500 job will pay tax of (17500-5700-3650)=8150*0.10=815
The 18000 job will pay tax of 8350*0.10+300*0.15=880
The difference in pay is therefore 500-(880-815)=$435