Question

Miley, a single taxpayer, plans on reporting $30,475 of taxable income this year (all of her income is from a part-time job). She is considering applying for a second part-time job that would give her an additional $10,000 of taxable income. By how much will the income from the second job increase her tax liability

Answer 1

$1,600

Step-by-step explanation:

Calculation to determine By how much will the income from the second job increase her tax liability

Based on the information given she had the amount of $10,000 as the additional taxable income which means that $9,000 out of the $10,000 will be taxed at 15% while the remaining $1,000 ($10,000-$9,000) will be taxed at 25% according to the single tax rate schedule

Increase in tax liability =($9,000 × 15%) + ($1,000 × 25%)

Increase in tax liability= $1,600

Therefore By how much will the income from the second job increase her tax liability is $1,600