Miley, a single taxpayer, plans on reporting 26,350 of taxable income this year (all of h er income is from a part-time job). she is considering applying for a 2nd 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? 1,0001,5001,6002,500

$1,500

Explanation:

On the current slab of income being $26,350

Her tax shall be as follows:

$0 - $9225 = 10% = $922.50

From $9225 - $26350 = 15% = $2568.75

Thus, current tax rounded off = $3,491.25

Revised income = $26,350 + $10,000 = $36,350

Revised Tax shall be:

$0 - $9225 = 10% = $922.50

$36,350 - $9,225 = 15% = $4,068.75

Thus, total tax shall be = $4,991.25

Increment in tax because of additional part time income = $4,991.25 - $3,491.25 = $1,500

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