In your current job, you earn $41,000. You take the standard deduction of $12,200. You have an offer of a new job working for a different employer. Your salary would go up by $6,500. How much extra will you owe in federal income taxes if you take the new job?
$$\begin{array} { c c c }
\hline \begin{array} { l }
\text { For taxable } \
\text { income over } \ldots
\end{array} & \begin{array} { c }
\ldots \text { but not } \
\text { over } \ldots
\end{array} & \begin{array} { c }
\ldots \text { the marginal } \
\text { tax rate is: }
\end{array} \
\hline \$ 0 & \$ 9,700 & 10 \% \
\$ 9,700 & \$ 39,475 & 12 \% \
\$ 39,475 & \$ 84,200 & 22 \% \
\$ 84,200 & \$ 160,725 & 24 \% \
\$ 160,725 & \$ 204,100 & 32 \% \
\$ 204,100 & \$ 510,300 & 35 \% \
\$ 510,300 & - & 37 \% \
\hline
\end{array}$$

Question

In your current job, you earn $41,000. You take the standard deduction of $12,200. You have an offer of a new job working for a different employer. Your salary would go up by $6,500. How much extra will you owe in federal income taxes if you take the new job?
$$\begin{array} { c c c } 
\hline \begin{array} { l } 
\text { For taxable } \
\text { income over } \ldots
\end{array} & \begin{array} { c } 
\ldots \text { but not } \
\text { over } \ldots
\end{array} & \begin{array} { c } 
\ldots \text { the marginal } \
\text { tax rate is: }
\end{array} \
\hline \$ 0 & \$ 9,700 & 10 \% \
\$ 9,700 & \$ 39,475 & 12 \% \
\$ 39,475 & \$ 84,200 & 22 \% \
\$ 84,200 & \$ 160,725 & 24 \% \
\$ 160,725 & \$ 204,100 & 32 \% \
\$ 204,100 & \$ 510,300 & 35 \% \
\$ 510,300 & - & 37 \% \
\hline
\end{array}$$

Quizplus · Accepted Answer

The current job's taxable income after the standard deduction is $41,000 - $12,200 = $28,800, which falls into the 12% tax bracket. The new job's salary would be $41,000 + $6,500 = $47,500, and after the standard deduction, the taxable income would be $47,500 - $12,200 = $35,300. The additional income of $6,500 would also be taxed at 12%, as it falls within the same tax bracket. Therefore, the extra federal income taxes owed would be $6,500 * 12% = $780.

In Your Current Job, You Earn $41,000 A)$780 B)$650 C)$1,430 D)$9,020

In Your Current Job, You Earn $41,000 A)$780
B)$650
C)$1,430
D)$9,020