Question

1.) 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?

2.) Jim's boss Ron will have $676000/year taxable income in 2018. What will he owe the IRS?

Answer 1

Answer 1. It totally depends on the tax bracket in which jim falls, however his tax liability is likely to double due to double income.

Answer 2. There are different tax slabs for different tax payers:-

Marginal tax rates for 2017

Marginal Tax Rate[21]	Single Taxable Income	Married Filing Jointly or Qualified Widow(er) Taxable Income	Married Filing Separately Taxable Income	Head of Household Taxable Income
10%	$0 – $9,325	$0 – $18,650	$0 – $9,325	$0 – $13,350
15%	$9,326 – $37,950	$18,651 – $75,900	$9,326 – $37,950	$13,351 – $50,800
25%	$37,951 – $91,900	$75,901 – $153,100	$37,951 – $76,550	$50,801 – $131,200
28%	$91,901 – $191,650	$153,101 – $233,350	$76,551 – $116,675	$131,201 – $212,500
33%	$191,651 – $416,700	$233,351 – $416,700	$116,676 – $208,350	$212,501 – $416,700
35%	$416,701 – $418,400	$416,701 – $470,700	$208,351 – $235,350	$416,701 – $444,550
39.6%	$418,401+	$470,701+	$235,351+	$444,501+

As per these slabs Jim's Boss Ron Falls in the bracket of 39.6% which makes his liability to $267696 .

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