In a recent year, a single person could expect to pay $4200 in income taxes on an adjusted gross income of $30,000. How much more tax should the person expect to pay if her adjusted gross income increased by $3000, knowing that this would not move her into the higher tax bracket? She should expect to pay how much more in taxes.

Question

In a recent year, a single person could expect to pay $4200 in income taxes on an adjusted gross income of $30,000. How much more tax should the person expect to pay if her adjusted gross income increased by $3000, knowing that this would not move her into the higher tax bracket? She should expect to pay how much more in taxes.

Answer 1

42/300 * 3/30

Answer 2

oops. for raw increase,

42/300 * 3

Answer 3

To determine how much more tax the person should expect to pay if their adjusted gross income increases by $3000, we need to understand their tax bracket and the tax rates associated with it.

Firstly, let's assume that their current adjusted gross income of $30,000 places them in the 15% tax bracket. This information is critical because it helps us determine the tax rate that applies to their income.

For the given tax bracket (15%), we can calculate the tax owed by multiplying the income by the tax rate. In this case, the tax owed would be 15% of $30,000, which is $4,500.

Now, let's calculate the expected tax on the increased income of $3000. Since this increase doesn't move the person into a higher tax bracket, we can still use the 15% tax rate. Therefore, the additional tax owed would be 15% of $3000, which is $450.

So, if the person's adjusted gross income increased by $3000, they should expect to pay an additional $450 in taxes, assuming they remain in the same tax bracket.

It's worth noting that this calculation assumes a simplified tax system with no deductions or credits. In reality, an individual's tax liability may be affected by various factors that can impact their taxable income.