in a recent year a single person could expect to pay 4160 in income taxes on an adjusted gross income of 26,000. how much more tax should the person expect to pay if her adjusted gross income increased by 4,000 knowing that this would not move her into the higher tax bracket.
She's paying 16% on 26,000, so I expect she'd pay $640 more on an additional $4,000.
Thank you Ms, sue
You're welcome, Ann.
To calculate the additional tax that the person should expect to pay, we need to know the tax rate applicable to their income level. Since the information provided does not specify the tax rate, we can't determine the exact amount. However, I can explain how you can calculate it on your own using the tax rate information.
To start, we can find out the tax bracket the person falls into based on their income level. This will help us determine the applicable tax rate.
1. Look up the tax brackets for the given year: Tax brackets are available on the Internal Revenue Service (IRS) website or in the tax documentation for the specific country or region you are referring to. For example, in the United States, you can find the tax brackets on the IRS website.
2. Identify the tax bracket for the person's adjusted gross income (AGI): Find the tax bracket within which the person's AGI of $26,000 falls.
3. Determine the tax rate for that tax bracket: Once you identify the tax bracket, you can determine the tax rate associated with it.
4. Calculate the tax owed on the current AGI: Multiply the tax rate by the person's AGI of $26,000 to find the amount of tax they should expect to pay.
5. Calculate the tax owed on the increased AGI: Add the additional AGI of $4,000 to the person's current AGI, and then apply the tax rate associated with their new tax bracket to this total. This will give you the amount of tax they should expect to pay if their AGI increased.
6. Find the difference in taxes: Subtract the tax owed on the current AGI from the tax owed on the increased AGI to determine the additional tax they should expect to pay.
Please note that tax rates and brackets can vary from year to year and from country to country. It is important to refer to the specific tax information applicable to the relevant jurisdiction for accurate calculations.