Miley, a single taxpayer, plans on reporting $31,525 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 $10,400 of taxable income. By how much will the income from the second job increase her tax liability? (Use the tax rate schedules.)

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Miley's initial taxable income is $31,525. With the additional $10,400, her total taxable income becomes $41,925. The tax on the first $31,525 is calculated using the tax brackets for a single filer. The additional $10,400 falls into the next tax bracket, and the tax on this additional income is calculated at the marginal rate for that bracket. The increase in tax liability is $1,428.

Miley, a Single Taxpayer, Plans on Reporting $31,525 of Taxable