Job A pays an annual salary of $17,500 while job B pays $18,000. The taxpayer choosing between the 2 jobs files his federal inco
me tax return with a standard deduction of $5700, only himself as an exemption for$3650, and no additional adjustments to income. After taxes, what is the difference in pay between the two jobs? Use the table below as a guide.
The 17500 job will pay tax of (17500-5700-3650)=8150*0.10=815 The 18000 job will pay tax of 8350*0.10+300*0.15=880 The difference in pay is therefore 500-(880-815)=$435
The dependent variable is m. The independent variable is h or hours worked. M or money earned is dependent because it will vary depending on the number of hours worked.
