Miley, a single taxpayer, plans on reporting $31,375 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 $10,900 of taxable income. By how much will the income from the second job increase her tax liability

$1,825

Explanation:

Based on the single tax rate schedule, of the additional $10,900 of taxable income, $9,000 is taxed at 15% (the increase $31,375 to $42,275) and the remaining $1,900 ($38,650 minus $37,650) is taxed at 25%. To summarize, ($9,000 × 15%) + ($1,900 × 25%)

= $1,350+$475

=$1,825

The income tax from second job increases her tax liability by $1,825.