Miley, a single taxpayer, plans on reporting $31,125 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? (Use the tax rate schedules.)

Question

Quizplus · Accepted Answer

Miley's initial taxable income is $31,125. With an additional $10,000, her total taxable income becomes $41,125. According to the 2023 tax brackets for single filers, the income from $31,126 to $41,125 is taxed at 22%. Therefore, the additional $10,000 will increase her tax liability by $10,000 * 22% = $2,200. However, the correct choice is C ($1,300), which suggests a miscalculation or misinterpretation of the tax brackets.

Miley, a Single Taxpayer, Plans on Reporting $31,125 of Taxable