Miley,a single taxpayer,plans on reporting $29,700 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)

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Quizplus · Accepted Answer

Miley's initial taxable income of $29,700 falls in the 12% tax bracket. Adding $10,000 would bring her total taxable income to $39,700, which is still within the 12% bracket. Therefore, the additional $10,000 would be taxed at 12%, resulting in an increase in tax liability of $1,200.

Miley,a Single Taxpayer,plans on Reporting $29,700 of Taxable Income This