she is a head of household standard deduction, she is a widow with 2 kids.

b. During the year, Joyce is offered a new job that has greater future potential than her current job. If she accepts the job offer, her earnings for the year will be $39,000. Determine the increase or decrease in Joyce's net cash flow if she accepts the new job. Since the child tax credit will be the same under either scenario, you can ignore it for purposes of this analysis. Use the Tax Rate Schedule when computing her income tax. Keeps Old Job Takes New Job Tax calculation: Salary $33,000 $39,000 Less: standard deduction 18,350 18,350 Taxable income 14,650 $ 20,650 Income tax 1,564 $ 2,284 Less: earned income credit 2,886 1,622 Net tax due or refund 1,322 662 After-tax cash flow: Salary $33,000 $39,000 Less: net tax due or add refund 1,322 -662 After-tax cash flow 34,322 38,338 in cash flow if accept Net increase new job 4,016 b. During the year, Joyce is offered a new job that has greater future potential than her current job. If she accepts the job offer, her earnings for the year will be $39,000. Determine the increase or decrease in Joyce's net cash flow if she accepts the new job. Since the child tax credit will be the same under either scenario, you can ignore it for purposes of this analysis. Use the Tax Rate Schedule when computing her income tax. Keeps Old Job Takes New Job Tax calculation: Salary $33,000 $39,000 Less: standard deduction 18,350 18,350 Taxable income 14,650 $ 20,650 Income tax 1,564 $ 2,284 Less: earned income credit 2,886 1,622 Net tax due or refund 1,322 662 After-tax cash flow: Salary $33,000 $39,000 Less: net tax due or add refund 1,322 -662 After-tax cash flow 34,322 38,338 in cash flow if accept Net increase new job 4,016