Question

1)Part A Jim is a Mechanical Engineer. He earns $104000/year after allowable deductions. What will he owe the IRS in 2018? $

2) Part B Jim is offered a new position that will double his taxable income for 2018. If he accepts the new position how much more will he owe the IRS in 2018? $

3) Jim's boss Ron will have $674000/year taxable income in 2018. What will he owe the IRS? $

Answer 1

TAX BRACKETS OF YEAR 2018 RELAING TO INDIVIDUAL TAXPAYERS WILL BE APPLICABLE HERE IN THE QUESTION
Answer Part ( 1 )	Amount in $
Taxable Income	104000
Tax Bracket	19078.75 + 28% of the amount over 93700
Tax Due	19078.75 + (104000-93700)*28%
	19078.75 + 2884 = 21962.75 or 21963

Answer Part (2)	Amount in $
Taxable Income	104000*2 = 208000
Tax Bracket	47568.75 + 33% of the amount over 195450
Tax Due	47568.75 + (208000-195450)*33%
	47568.75 + 4141.50 = 51710.25 or 51710

Answer Part ( 3 )	Amount in $
Taxable Income	674000
Tax Bracket	123916.25 + 39.6% of the amount over 426700
Tax Due	123916.25 + (674000-426700) * 39.6%
	123916.25 + 97930.80 = 221847.05 or 221847