A single person could expect to pay $4,760 in income taxes on an adjusted gross income of $34,000 how much more tax should the person expect to pay if her adjusted gross income increased by $2,000, knowing that this owuld not move her into the higher tax bracket
rate = 4760/34000 = .14
so .14(36000) = $ 5040
Thank you so much I appreciate your help.
To determine how much more tax the person should expect to pay if her adjusted gross income increased by $2,000, we first need to find the tax rate associated with her current income.
The tax rate for a specific income range can be found using the tax brackets set by the Internal Revenue Service (IRS) in the United States. Each tax bracket has a corresponding tax rate.
Since the person's income of $34,000 does not move her into a higher tax bracket, we will assume she is within the 12% tax bracket for a single filer. The tax rate for this bracket is 12%.
To calculate the current tax amount, we multiply the income by the tax rate:
Current tax amount = Income * Tax rate
= $34,000 * 0.12
= $4,080
Therefore, based on an adjusted gross income of $34,000, the person should expect to pay $4,080 in income taxes.
Now, we can find out how much more tax she would need to pay if her adjusted gross income increased by $2,000. Assuming this increase still keeps her within the same tax bracket, the tax amount will be calculated as follows:
New income = Current income + Increase in income
= $34,000 + $2,000
= $36,000
New tax amount = New income * Tax rate
= $36,000 * 0.12
= $4,320
Therefore, if her adjusted gross income increased by $2,000, she should expect to pay an additional $240 in income taxes ($4,320 - $4,080).